NEWS28 January 2019

UK ad growth continues despite Brexit uncertainties

Media News Trends UK

UK – Adspend increased by 5.1% year-on-year to reach £5.6bn in the third quarter of 2018, according to the Advertising Association (AA)and Warc.

In the Expenditure Report, the AA/Warc pointed to this being the strongest growth since 2015, as well as the 21st consecutive quarter of growth.

Its adspend estimate for 2018 remains £23.5bn which is an overall growth of 6%.

Online – and in particular mobile – advertising continues to be behind the growth. Internet advertising grew by 12.3% between Q3 2017 and Q3 2018 while mobile grew 23.6% in the same period.

Other well performing formats included digital radio ad formats, with a year-on-year rise in Q3 of 25.1%; VoD TV at 11.5%; regional digital newsbrands grew 10.9%; national digital newsbrands were up 3.7% and digital magazine brands increased 1.5%. 

However looking forward, it predicts ad spend growth will slow to 4.6% for 2019.

Stephen Woodford, chief executive at the AA said: “UK advertising continues to perform strongly, now delivering its twenty-first straight quarter of growth and demonstrating the commitment of British advertisers to investing in the growth and success of their businesses.

“As the clock ticks down to our departure from the EU, it is crucial the government provides the certainty we are all seeking in business. We are predicting continued adspend growth of 4.6% in 2019 and an agreement with the EU that keeps disruption at a minimum and keeps trade and talent flowing will greatly help this growth.”