- DailyDOOH - http://www.dailydooh.com -

UK Advertising Posts Record Quarter as 2016 Spend Surges Past GBP 21bn

UK advertising expenditure grew 3.7% to reach GBP 21.4bn in 2016, the seventh consecutive year of market growth, according to the Advertising Association/WARC Expenditure Report – the UK’s definitive advertising statistics.

Growth in UK adspend held steady in Q3 after the June referendum, before reaching £5.8bn in Q4 2016, a rise of 3.9% year-on-year and the highest grossing quarter on record. In real terms, after accounting for inflation, UK adspend topped its pre-recession peak for the first time during both the final quarter and for 2016 as a whole. Forecasts for the next two years indicate continued growth of 2.5% in 2017 and 3.3% in 2018.

Stephen Woodford, Chief Executive at the Advertising Association told us “Advertising has proved resilient to uncertainty and behind these numbers is a cutting edge, digital business in which Britain is a world-beater. As we work towards Brexit, we’re urging Government to support UK advertising and do more to unlock its potential to grow UK plc.” 

Digital formats continued to drive growth in 2016, with internet adspend up by 13.4% to £10.3bn, with mobile accounting for 99% of that growth. Mobile spend reached £3.9bn, with 86% of the current value of the mobile advertising market generated in just the past five years.

Digital accounted for 38% of the £1.1bn out of home advertising market in 2016, double the share digital recorded in 2012, while revenues from online ads were up for national newsbrands (+4.9% to £230m) for the fifth year running.

TV adspend, boosted by 12.6% growth in video-on-demand revenue, recorded a new high of £5.3bn in 2016, with TV’s share of overall spend holding steady at 25% over the last decade. Annual growth in adspend was also recorded for cinema (+8% to £257m) and radio (+5.4% to £646m) in 2016.

 James McDonald, Senior Data Analyst at WARC was quoted as saying “The UK’s ad industry is experiencing the most seismic shift since WARC began monitoring in 1982. Last year exemplified this, as over 95% of the money entering the market came from digital formats. The trend will continue as ad tech improves and consumers spend more time with their internet-connected devices.” 

The Advertising Association/WARC Expenditure Report is the definitive measure of advertising activity in the UK. It is the only source that uses advertising expenditure gathered from across the entire media landscape, rather than relying solely on estimated or modelled data. With total market and individual media data available quarterly from 1982, it is the most reliable picture of the industry and is widely used by advertisers, agencies, media owners and analysts.




Adspend 2016 (£m) 2016 v 2015 Forecast 2017 Forecast 2018
% change % change % change
Internet 10,304 13.4% 8.5% 7.6%
of which mobile 3,866 45.4% 30.4% 20.8%
TV 5,277 0.2% -0.5% 3.0%
of which spot advertising 4,730 -0.5% -1.4% 2.4%
of which broadcaster VoD 197 12.6% 13.7% 11.0%
Direct Mail 1,713 -10.4% -7.5% -6.0%
Out of Home 1,106 4.5% 3.4% 2.3%
National newsbrands 1,101 -10.0% -7.4% -7.2%
of which digital 230 4.9% 1.9% 1.4%
Regional newsbrands 1,021 -13.2% -8.6% -8.3%
of which digital 193 -3.4% 0.2% 1.0%
Magazine brands 877 -6.8% -5.1% -4.6%
of which digital 282 0.2% 3.3% 3.7%
Radio 646 5.4% 3.3% 2.6%
of which digital 28 35.0% 21.3% 18.7%
Cinema 257 8.0% 5.3% 3.6%
TOTAL UK ADSPEND 21,372 3.7% 2.5% 3.3%
Percentage point change to forecast since January shown in brackets. Broadcaster VoD, digital revenues for newsbrands and magazine brands, radio station websites and mobile advertising spend are also included within the internet total of £10,304m, so care should be taken to avoid double counting. Mobile includes tablet.
Source: AA/WARC Expenditure Report, April 2017.

At-a-glance media summary, Q4 2016