NEWS26 October 2016

UK ad expenditure sees 5.2% growth

Financials News Trends UK

UK — UK advertising expenditure rose by 5.2% to £9,999m in the first half of 2016, which is 0.4 percentage points ahead of forecast, according to the Advertising Association/ Warc Expenditure Report.

Growth in internet adspend was particularly strong, growing by 16.9% to reach £4,777m in the first half of the year. Within this category, mobile spend grew by 52.6% to reach £1,723m. For the first time, mobile now accounts for over half of all online display adspend in the UK.

Similarly, online video adspend grew by 66.4% to £252m, native advertising spend rose by 29.9% to £451m, and digital out of home increased by 28.9% to £176m. 

In light of this, full year growth forecasts have been revised upwards by one percentage point to 5.2%. However, the forecast for 2017 has been downgraded by half a point to 3.3%, linked to the expected impacts of the EU referendum. 

“Investment in UK advertising remains strong this year, and the trend towards digital and mobile continues – but the medium term is more complex," said Tim Lefroy, chief executive at the Advertising Association. "The Government should avoid any regulatory uncertainty that might affect advertising’s stimulus to the economy.”