Warc/AA: UK ad spend weathers Brexit uncertainty
02 Aug 2016
UK ad spend will increase by 4.2% in 2016 and 3.8% in 2017 according to new Warc/AA figures released today
Ad spend in the UK rose by 4.3% to pass the £5bn mark in the first quarter of 2016, the first time this milestone has been achieved,according to the latest Advertising Association/Warc Expenditure Report.
Overall forecasts have been revised down slightly since the previous quarter published in April, by 1.3pp for 2016 and 1.7pp for 2017, driven by decreases for newsbrands and direct mail.
Despite economic uncertainty thanks to the decision to leave the EU, internet spend forecasts increased by 0.8pp to 12.3% in 2016, with mobile advertising predicted to increase 39.3% in the same period.
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 a global advertising hub and ensure we remain open to the world’s best advertising talent.”
|
Adspend 2015 (£m) |
2015 vs 2014 |
Forecast 2016 |
Forecast 2017 |
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|
% change |
Adspend (£m) |
%/PP change |
%/PP change |
||||
|
TV |
5,270 |
7.3% |
5,458 |
3.6% |
(-1.5pp) |
3.1% |
(-2.0pp) |
|
of which spot |
4,760 |
6.7% |
4,890 |
2.7% |
(-1.7pp) |
2.3% |
(-2.0pp) |
|
of which VOD |
175 |
20.7% |
205 |
17.1% |
(0.0pp) |
14.6% |
(-2.5pp) |
|
Radio |
592 |
2.9% |
609 |
2.9% |
(-1.4pp) |
1.7% |
(-2.1pp) |
|
Out of home |
1,059 |
3.9% |
1,101 |
4.0% |
(-0.9pp) |
2.1% |
(-2.1pp) |
|
of which digital |
332 |
22.0% |
388 |
17.0% |
(n/a) |
15.8% |
(n/a) |
|
National newsbrands |
1,222 |
-10.8% |
1,098 |
-10.1% |
(-4.2pp) |
-10.8% |
(-7.4pp) |
|
of which digital |
220 |
2.5% |
222 |
1.1% |
(-3.6pp) |
1.4% |
(-9.3pp) |
|
Regional newsbrands |
1,176 |
-6.2% |
1,062 |
-9.7% |
(-4.3pp) |
-8.5% |
(-4.7pp) |
|
of which digital |
199 |
14.8% |
211 |
6.0% |
(-7.8pp) |
6.9% |
(-4.7pp) |
|
Magazine brands |
941 |
-5.2% |
886 |
-5.9% |
(-1.4pp) |
-7.0% |
(-4.3pp) |
|
of which digital |
282 |
5.8% |
287 |
2.0% |
(-1.4pp) |
-0.2% |
(-6.1pp) |
|
Cinema |
240 |
21.9% |
243 |
1.3% |
(-2.7pp) |
2.4% |
(+0.7pp) |
|
Internet |
8,606 |
17.3% |
9,665 |
12.3% |
(+0.8pp) |
10.1% |
(-0.5pp) |
|
of which mobile |
2,627 |
61.1% |
3,660 |
39.3% |
(+2.5pp) |
23.4% |
(+0.1pp) |
|
Direct mail |
1,841 |
0.3% |
1,708 |
-7.2% |
(-8.1pp) |
-5.0% |
(-4.5pp) |
|
TOTAL UK ADSPEND |
20,071 |
7.4% |
20,904 |
4.2% |
(-1.3pp) |
3.8% |
(-1.7pp) |
|
Broadcaster VOD, digital revenues for newsbrands and magazine brands, radio station websites and mobile advertising spend are also included within the internet total of £8,606m, so care should be taken to avoid double counting. Radio includes branded content. From Q1 2015, the IAB has included spend for outstream/in-read video for the first time. This amounted to approximately £148m in 2015. Digital out of home forecasts are a new series since August 2016. |
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Percentage point change since April shown in brackets. |
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Source: AA/Warc Expenditure Report, August 2016. |
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