NEWS2 August 2016
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UK – Advertising expenditure in the UK is forecast to increase by 4.2% in 2016 and 3.8% in 2017, according to figures from the Advertising Association and Warc in the Expenditure Report.
It shows the UK ad market reached just over £5 billion for the first quarter of 2016.
Overall forecasts were revised down slightly since April – down 1.3 percentage points for 2016 – due to downgrades in spend on newsbrands and direct mail. However internet spend forecasts were revised up by 0.8 percentage points to 12.3% in 2016. Mobile advertising is predicted to rise 39.3% in 2016.
Tim Lefroy, chief executive at the Advertising Association said: “These numbers suggest that, despite uncertainty, our sector is resilient. Government can underpin that by taking every step possible to build advertiser confidence, promote the UK as global advertising hub and ensure we remain open to the world’s best advertising talent.”
In Q1 2016 TV advertising grew 3.3% reaching £1.3bn; radio increased 2.9% to £127m; out of home rose 3.9% to £238m; national newsbrands declined 14.4% to £267m; cinema dipped 0.6% to £52m (Nielsen data); internet grew 15.3% to £2.3bn and direct mail dropped 13.3% to £424m (Royal Mail data).
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