The growth of digital marketing has helped UK ad spend beat expectations for 2016, but Brexit has led to lower forecasts in 2017, according to new figures. The Advertising Association and Warc report said nthe growth came despite uncertainty around June’s Brexit vote, with forecasts for 2017 revised down 0.5 percentage points to 3.3 per […]
The growth of digital marketing has helped UK ad spend beat expectations for 2016, but Brexit has led to lower forecasts in 2017, according to new figures.
The Advertising Association and Warc report said nthe growth came despite uncertainty around June’s Brexit vote, with forecasts for 2017 revised down 0.5 percentage points to 3.3 per cent growth.
The report found that in 2016 was up one percentage point from the previous estimate, to £21.1bn. By comparison, the total spend figure totalled £20.1bn in 2015.
However, Internet advertising is expected to be up 15.7 per cent to nearly £10bn in 2016 as a whole, with mobile internet advertising spend performing even better, up 45.6 per cent.
Newspapers and magazines are to be the worst performing, with spending in all of these areas shrinking this year, while TV advertising will grow 2.4 per cent – revised down 1.2 percentage points.
Within broadcast, video-on-demand advertising spend is expected to grow 17.1 per cent this year and by the same amount next year.
View the full table here:
“Investment in UK advertising remains strong this year, and the trend towards digital and mobile continues – but the medium term is more complex,” said Tim Lefroy, chief executive at the Advertising Association. “The Government should avoid any regulatory uncertainty that might affect advertising’s stimulus to the economy.”
The report also reveals that digital formats are continuing to thrive across all media, with online video adspend increasing by 66.4%, to £252m, while native advertising spend also grew 29.9% to £451m in H1.
Digital out-of-home increased 28.9% in H1 to reach £176m, taking out-of-home’s total spend to £511m.
Read the full report here (registration required).
