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NEWS26 April 2018

UK ad spend reaches £22.2bn

Brexit Financials Media Mobile News Technology UK

UK – Ad spend in the UK grew 4.6% to £22.2bn in 2017, driven by the continued growth of internet advertising, according to the latest figures released by the Advertising Association and Warc.

The increase means that UK advertising has seen eight consecutive years of market growth, with internet advertising representing £11.6bn of spend, growing by 14.3% compared to 2016.

Mobile advertising saw a growth of over 37% in the last year, while TV was down by 3.2%. Digital radio grew by 26.3% over the course of the year, spend on national digital newsbrands was up by 19.3%, and broadcaster video-on-demand rose by 7.1%. 

Spend in the fourth quarter of 2017 was the highest recorded for one quarter, growing by 6.2% compared to Q4 of 2016 to over £6bn.

The AA/Warc expenditure report has also improved the forecast for the year ahead, with growth of 4.2% expected during 2018.

Stephen Woodford, chief executive at the Advertising Association, said the figures reinforce the industry’s "strength and resilience".

He said: "The results also reflect wider trends within the UK economy over recent months, with inflation at its lowest for a year, reducing pressure on real wages, strong employment statistics, and the recent upgrade by the IMF of its economic growth forecast for the UK for this year." 

However, he added that the UK’s ability to remain a "global powerhouse" in advertising is dependent on a favourable deal from Brexit, ensuring access to international talent.

 

Forecast summary

Adspend 2017 (£m)

2017 v 2016

Forecast 2018

Forecast 2019

% change

% change

% change

Internet*

11,553

14.3%

9.2%

7.1%

of which mobile

5,223

37.3%

20.3%

15.5%

TV

5,108

-3.2%

2.3%

3.0%

of which VoD

211

7.1%

11.7%

11.8%

Direct mail

1,753

0.9%

-4.0%

-4.0%

Out of home

1,144

1.5%

1.5%

2.9%

National newsbrands

1,032

-5.6%

-4.3%

-2.8%

of which digital

275

19.3%

10.7%

10.2%

Regional newsbrands

887

-13.1%

-9.7%

-5.8%

of which digital

212

9.9%

3.1%

7.6%

Magazine brands

776

-11.5%

-8.6%

-5.7%

of which digital

271

-4.0%

-2.9%

1.8%

Radio

679

5.2%

4.2%

4.4%

of which digital

35

26.3%

20.9%

16.9%

Cinema

260

3.3%

8.8%

7.0%

TOTAL UK ADSPEND

22,191

4.6%

4.2%

3.8%

* Broadcaster VoD, digital revenues for newsbrands and magazine brands, radio station websites and mobile advertising spend are also included within the internet total of £11,553m.

Source: AA/WARC Expenditure Report, April 2018

@RESEARCH LIVE

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