Ad expenditure hits £21.4bn in 2016
This was the seventh consecutive year of market growth with digital formats fairing the best. Internet ad spend was up 13.4% to £10.3bn – mobile accounted for 99% of the growth.
Mobile spend reached £3.9bn, with 86% of the current value of the mobile advertising market generated in just the past five years.
Digital accounted for 38% of the £1.1bn out of home advertising market in 2016, double the share digital recorded in 2012, while revenues from online ads were up for national newsbrands (+4.9% to £230m) for the fifth year running.
TV adspend, boosted by 12.6% growth in video-on-demand revenue, recorded a new high of £5.3bn in 2016, with TV’s share of overall spend holding steady at 25% over the past decade.
Stephen Woodford, chief executive at the Advertising Association said: “Advertising has proved resilient to uncertainty and behind these numbers is a cutting edge, digital business in which Britain is a world-beater. As we work towards Brexit, we’re urging government to support UK advertising and do more to unlock its potential to grow UK plc.”
| Adspend 2016 (£m) | 2016 v 2015 | Forecast 2017 | Forecast 2018 |
% change | % change | % change | ||
Internet | 10,304 | 13.4% | 8.5% | 7.6% |
of which mobile | 3,866 | 45.4% | 30.4% | 20.8% |
TV | 5,277 | 0.2% | -0.5% | 3.0% |
of which spot advertising | 4,730 | -0.5% | -1.4% | 2.4% |
of which broadcaster VoD | 197 | 12.6% | 13.7% | 11.0% |
Direct Mail | 1,713 | -10.4% | -7.5% | -6.0% |
Out of Home | 1,106 | 4.5% | 3.4% | 2.3% |
National newsbrands | 1,101 | -10.0% | -7.4% | -7.2% |
of which digital | 230 | 4.9% | 1.9% | 1.4% |
Regional newsbrands | 1,021 | -13.2% | -8.6% | -8.3% |
of which digital | 193 | -3.4% | 0.2% | 1.0% |
Magazine brands | 877 | -6.8% | -5.1% | -4.6% |
of which digital | 282 | 0.2% | 3.3% | 3.7% |
Radio | 646 | 5.4% | 3.3% | 2.6% |
of which digital | 28 | 35.0% | 21.3% | 18.7% |
Cinema | 257 | 8.0% | 5.3% | 3.6% |
TOTAL UK ADSPEND | 21,372 | 3.7% | 2.5% | 3.3% |
Source: AA/Warc Expenditure Report, April 2017
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