NEWS31 January 2017

UK adspend holds firm despite Brexit vote

UK – Advertising expenditure growth of 3.2% is forecast for 2017, following the first third quarter to break the £5bn spend barrier, according to the Advertising Association (AA)/ Warc Expenditure Report.

Brexit growth crop

The third quarter of 2016 – the first full quarter following the UK’s vote to leave the EU – saw adspend rise 4.2% to £5,142m. This is the first time that spend has broken £5bn in a third quarter. This was reportedly driven by strong growth ( 15.3%) in internet spend, which in turn was boosted by a 45.6% growth in mobile spend.

Digital out-of-home spend also grew strongly ( 24.7%), and TV spend rose by 1.4%.

The full year adspend estimate is 4.4% growth, reaching a total of £21.1bn. This is £886m more than in 2015 and represents a seventh consecutive year of growth in the UK’s advertising market. In 2017, adspend is forecast to grow by a further 3.2%.

“That adspend held up after the referendum is another marker of the strength of the UK’s advertising and media industries," said Stephen Woodford, chief executive of the Advertising Association.

"As the Government gears up for Brexit negotiations and a new industrial strategy, it must prioritise protecting this global advantage.”