Tag: ad spend
Commuters contribute £22.8bn to the UK economy per year
Average weekly spend of UK commuter is £89, amounting to 14% of annual online sales.
A major report into commuters’ spending habits, conducted by leading Out-of-Home (OOH) media agency Kinetic and OOH media owner Exterion Media, in partnership with the Centre for Business and Economics Research (Cebr), has revealed that the value of commuter commerce to the UK economy is £22.8 billion per year. In total, this amounts to 14% of annual online spending in the UK.
Spend calculated in this latest report includes both products and services purchased via mobile whilst on the move, ranging from clothing to insurance. Across the UK, the typical weekly spend for commuters amounts to £89, rising to £153 a week for commuters in London. Nearly half (43%) of commuters nationally said they made a purchase whilst commuting at least four times a month.
In all regions surveyed, clothing was the most popular purchase, with 76% of those surveyed saying they’d purchased clothes in the past year on their commute. This was followed closely by purchases in health and beauty (71%), activities (69%), and grocery shopping (65%).
The research also uncovered that 70% of commuters have made a purchase as a result of advertising seen on their journeys.
Commuters responded (23% based in London, 18% rest of the UK) that outdoor advertising seen on their commute often reminded them to shop, proving the power of OOH advertising as a significant driving force behind purchases. It also highlights the link between online and offline commerce facilitated by smartphones.
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Source: https://www.exterionmedia.com/uk/about-us/latest-news/news/commuters-contribute-to-the-uk-economy
Ad spend to shift from Facebook to Instagram
Brands head to Instagram to spend their ad budget in 2019, with more advertisers preferring it over Facebook.
Instagram is becoming an increasingly attractive place for brands to splosh some dosh and the numbers suggest this trend will continue into 2019. With advertisers increasingly turning their backs on Facebook’s News Feed and making better friends with Instagram’s Stories.
According to Socialbakers, ad spend on Instagram increased in 2018 while decreasing on Facebook, driven by hard-to-rival engagement levels on the photo-sharing platform.
While Instagram has a smaller audience size compared to its parent company, its users are far more engaged. Suggesting that Instagram is the go-to for capturing quality engagement within smaller communities.
Last year, Instagram posts continued to reach and garner more impressions per fan than its Stories feature (around 15% and 25% more, respectively).
However, the volume of brands posting on Stories has quadrupled over the last year, with brands investing 212% more in Stories compared with the previous year.
A quarter (25%) of brands’ Instagram ad spend now goes on Stories. This will continue to grow through 2019. As just a few examples, easyJet recently made it possible for users to find and book holidays simply by clicking on a photo, while Spotify, SoundCloud and Shazam are offering their services via Stories. Expect to see more of this integration in the coming months, especially as Instagram promises to enhance its ecommerce features.
Alice Cuffe, editor at We Are Social, says while no one can argue that the specialised and detailed targeting of Facebook is appealing to advertisers, when it comes to creative innovation, Instagram Stories has the edge.
“Instagram has evolved Stories to allow brands to connect with audiences in a space where they feel comfortable enough to express their truest, least curated selves,” she explains.
“While Facebook is simple and reliable, Stories is currently owning the reactive space. Functionalities such as polls, questions, emoji sliders and swipe-up links all provide an easy and immediate way to connect with your audience and allow them to react to your brand in the moment. The temporary nature of Stories also means brands have more freedom to experiment, without necessarily requiring heavy design work or rounds of internal concepting.”
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Source: https://www.marketingweek.com/2019/01/04/five-trends-media-2019/?cmpid=em~newsletter~breaking_news~n~n&utm_medium=em&utm_source=newsletter&utm_campaign=breaking_news&eid=7065287&sid=MW0001&adg=5C1E1BD4-B878-43B7-9CA5-52C2F49301DB&nocache=true&adfesuccess=1
Digital has helped UK ad spend bounce back from two-year low
Investment in digital has helped wider UK ad spend rebound from a two-year low.
According to the latest Bellwether report from the Institute of Practitioners in Advertising (IPA), 23% of marketers said they had higher spending plans for overall marketing activity in the second quarter of the year. Elsewhere, 17% said they had lowered budgets, which results in a net balance of +6.5%.
The figure was an increase in the 5% net score reported in Q1 of 2018, which had been the lowest since Q1 2016, however despite some signs of a bounce back it’s still the second lowest reading to have come back in the past two years.
The IPA’s quarterly report, which features original data drawn from a panel of around 300 UK marketing professionals from the UK’s top 1000, firms has also upwardly revised its UK ad spend forecast for 2018 – increasing it to around 1.1% from its prediction of 0.8% last quarter.
UK marketers were found to have revised their internet budgets up to their joint strongest levels in over a decade. A net balance of 22.7% of marketers reported upward revisions to their digital budgets. The level is not only up from Q1’s reading of 8.7%, but is also the highest it’s been since Q3 2007.
Main media advertising – which includes TV, radio and cinema – also showed more bullish growth than last quarter. While still not as high as digital the net balance was positive overall with 4.9% of marketers saying they were upping spend in these mediums.
Source: The Drum
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UK’s Top 20 Strongest Brands Revealed
The Top 20 strongest brands in the UK has been voted for and Lego has come out at the top!
The Centre for Brand Analysis asked 2,500 consumers to rank each brand for quality, reliability and distinction.
Previous winner British Airways fell out of the Top 20 all together as did Google and Amazon.
Rising brand names in the top 20 are Gillette in second place, and Apple in third. Marks and Spencer has overtaken John Lewis who is now in 15th place with M&S in seventh. BP, Shell, Disney and Heathrow all re entered the top 20 this year, whilst household brands, Andrex, Coca Cola and Heinz retained a position in the top 10.
Top 20
1. Lego
2. Gillette
3 Apple
4. Andrex
5. Coca-cola
6. Disney
7. M & S
8. Boots
9.Heinz
10. BMW
11. Cadbury
12. Rolex
13. BP
14. Shell
15. John Lewis
16. Heathrow
17. Jaguar
18. Kleenex
19. Visa
20. Haagen – Dazs
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Integrating TV Advertising with DOOH
When TV advertising and DOOH advertising are combined, the impact on the viewer is significantly increased rather than with one medium alone.
TV advertising creates prestige for a brand whilst developing an element of trust with the viewer. 77% of adults claim that TV adverts are most likely to trigger an emotional response leaving a memorable impression on the viewers mind.
DOOH is more likely to engage people who are active, such as commuters, shoppers, and socialisers. Their engagement with the ad in this active state will thus make it more likely that the brand becomes inescapable; it’s marketing message engrained.
From a planning point of view the integration of DOOH and TV is flexible in deadline cut off allowing changes to marketing messages and reaction to the current market place. DOOH advertising is fast and responsive, with campaign amendments often made hourly. This affords brands the agility to optimise their advertising activity, boost campaign efficiency, and obtain last-minute deals.
What’s more, campaign efficiency can be increased by integrating the targeting capabilities of TV and DOOH advertising. TV ads allow for demographic targeting, as they can be placed on niche interest channels or programming watched by a brand’s target audience.
DOOH ads can be targeted in terms of location (for example, advertising outside a retail outlet to attract more customers) and time (for example, advertising by lunchtime to target commuters). Indeed, DOOH ads will serve as a perfect supplement to TV ads because they are not as easily avoided as TV ads, and will reach a wider audience.
Finally, integration heightens online response. Indeed, 74% of UK adults claim to have picked up an internet connected device during TV ad breaks This consequently leads to upsurges in brand searches and greater social media engagement. The use of DOOH will further drive this online response. According to a research project, OutPerform, by Outsmart, OOH activity drives +17% uplift in smartphone brand actions. The integration of TV and DOOH should thus generate a wider online response.
In summary, it is clear that the distinct benefits of TV ads and DOOH ads will be significantly increased when they are working together. This will create a more effective advertising strategy for the advertiser, thereby ensuring that its audience is more acutely captivated.
If you need help ensuring your marketing budget is invested on the right media platforms so you STAND OUT and get results, contact our award winning team for impartial media planning and buying expertise on [email protected] or call us on 02921 320200. #LoveMarketing
Ad spend increased by 3.7 % in 2016
New figures out indicate that Brexit had no adverse affect on UK ad spend with a flat growth in Q3 and an increase of 3.9% year on year, to £5.8bn in Q4.
This is the seventh consecutive year that advertising has shown a growth, with a spend of £21.4 bn in total for 2016 up by 3.7%
Internet spend dominates, up 13.4% to £10.3 bn for 2016. Mobile accounted for 99% of that growth, with ad spend for mobile platforms up a significant 45.4% to £3.9bn.
It is predicted that mobile advertising spend will slow over the coming years (2017: +30.4% and 2018: +20.8%)
Some traditional advertising mediums continue to hold their own with TV advertising growth driven by a 12.6% rise in video-on-demand ad revenues in 2016. Cinema spend was also up by 8% to £257m and radio up 5.4% to £646m.
Print spend fell by 10% to £10.1bn and direct mail fell by 10.4% to £1.7 bn.
The forecast for the next two years is positive with ad spend forecast to grow.
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Marketers report increased adspend despite falling confidence amid Brexit
According to the IPA’s Bellwether Report, UK marketers have “held their nerve” in the face of an uncertain business climate following the UK’s Brexit vote.
Brands are losing consumer trust on social media
Recent research conducted by YouGov for the Chartered Institute of Marketing, shows 25% of consumers claimed to have seen a fake online review, increased from 17% when the survey was last conducted in 2014. Also, 21% (up from 14% in 2014) of consumers say they have seen a brand incentivising customers to share positive comments on social media without making it clear to the users, with 16% saying that brands pay someone for promotion without payment being declared.
“This has led to consumers querying if what they are seeing is genuine. There is a growing awareness of certain practices out there, brands should be wary,” says CIM CEO Chris Daly.
Brands social media platforms are losing trust with consumers. 30% say they have little or no trust in the brand information they view on Facebook, 20% rise since 2014. The increase is matched across Twitter, Instagram, Pinterest and LinkedIn.
Brands should be concerned as social media is a key source of information for consumers when making purchase decisions. When questioned by CIM, 62% of people said they now ‘Often’ or ‘occasionally’ use social media when deciding whether to make a purchase.
“Consumers are looking for reassurance on social media that the restaurant they have booked for a special occasion or laptop they are thinking of buying is the right choice.
“Creating a degree of transparency and honesty will make brands appear authentic and boost loyalty.” – Chris Daly, CEO, CIM
The Advertising Standards Authority has undertaken work to engage with, raise awareness of and produce advice and training to marketers. 52% of marketers have little or no understanding of regulations about marketing on social media,“We take a dim view of marketers who ignore the ad rules,” says an ASA spokesman. “They risk having their ad banned and the resulting negative publicity and damage to their brand and could land them in hot water with the CMA for potentially breaking the law.”
“With consumers increasingly expecting a two-way conversation, brands must be far more honest and authentic in trying to build that trust and engender customer loyalty,” says Daly. “Brands that try to cut corners or be disingenuous will be found out through social media.”
CIM has issued guidelines to help brands navigate social media. These include making sure marketers know the rules, are equipped with the right skills and knowledge, have a social media policy and talk about it with customers.
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UK adspend has grown to £20.1 billion
A recent report by the Advertising Association/Warc Expenditure has shown a rise in UK adspend by 7.5% to £20.1 billion. This is the highest rate since 2010.
Cinema adspend saw the greatest rise of 20.8 per cent to reach a record £283 million in 2015. The release of Star Wars: The Force Awakens and Spectre has strengthened this. It is expected to grow further in 2016.
The second highest was internet adspend which rose 17.3 per cent to £8.6 billion. Mobile made up 78 per cent of the growth as it increased 61.1 per cent to £2.6 billion. Rapid growth is expected to continue in this sector.
TV adspend rose by 7.3 per cent to reach a record £5.3 billion. This was made up of a growth in spot spend of 6.7 per cent to £4.8 billion, and a 20.7 per cent increase in video-on-demand to £175 million. Total TV spend is forecast to rise a further 5.1 per cent in 2016.
Radio adspend grew 2.9 per cent to £592 million, and out of home spend rose 3.9 per cent to a record high of £1.1 billion.
Despite the fantastic growth in adspend for these platforms, print adspend for national newsbrands dropped 11 per cent to £1.2 billion. However, digital adspend increased by 2.5 per cent to £220 million. Direct mail spend grew 1.4 per cent to £1.9 billion data from the Royal Mail has shown.
The ad market is expected to grow again this year with AA/Warc forecasting 5.5 per cent growth for 2016 and for 2017.
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Cinema ad spend surges as industry leaders invest in premium spots
Ad spend in UK cinema has experienced a year-on-year increase for the first quarter of 2016 at a massive 26%.
Of the many industries increasing their spend in cinema advertising, it appears the automakers industry is investing particularly heavily in the platform. Automaker brands have spent around 198% more on cinema during the first quarter of 2016 than they did during the same period in 2015.
The figures, released by Digital Cinema Media (DCM) also noted a surge in booking for premium positions as brands increasingly look to air ads in the last commercial slot before a film kicks off. This is known as the ‘Gold Spot’ and has seen revenues rise by 244%.
The Gold Spot position before every family film for the year was claimed earlier in 2016 by Sky through a one-year deal, ahead of the hugely anticipated movies like Zootropolis and Finding Dory.
Cinema ad spend grew by 7.6% globally in 2015 and is set to grow by a further 5% in 2017.
In light of this impressive growth, Karen Stacey, chief executive of DCM, claims: “2016 is proving a defining moment for cinema advertising and the stellar results that we have recorded so far, and in particular around the Easter period, speak volumes for the effectiveness and popularity of our medium.”
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TV advertising spend in the UK tops £5 billion for first time
TV advertising revenue in the UK reached £5.27 billion in 2015, according to figures provided to Thinkbox by the UK commercial TV broadcasters.
This is the sixth consecutive year that TV advertising revenue has grown in the UK.
The figure represents all the money invested by advertisers in commercial TV: linear spot and sponsorship, Broadcaster VOD, and product placement.
Based on data from Nielsen, online businesses invested over £500 million in TV in 2015, an increase of 14% on 2014. Google, Facebook and Netflix spend over 60% of their marketing budgets on TV advertising. While Motors increase TV spend by 18% to £318 million, finance increased by 17% to £428 million, and household FMCG increased by 14% to £199 million. Facebook was last year’s biggest new TV advertiser, investing £10.8 million.
TV advertising is 30% cheaper than 10 years ago
Despite some recent inflation in TV advertising prices due in part to increased advertiser demand and some decline in TV set viewing, in 2015 TV advertising was 30% cheaper in real terms than 10 years ago.
TV advertising at a glance:
- Commercial TV reaches 98.2% of the UK every week (BARB, 2015)
- An average broadcast TV campaign in the UK (of 400 TV ratings) gets 234 million views (BARB, 2015)
- The TV advertiser with the most views across 2015 was 30.5 billion
- TV advertising £ for £ has the highest return on investment with an average of £1.79 profit for every £1 invested (Ebiquity, ‘Payback 4’, 2014)
- 87% of TV in the UK is watched live (BARB, 2015)
- There are 17 million conversations about TV advertising every evening in the UK (BARB/Thinkbox, 2015)
“TV advertising works, it works better than anything else, and it works for all budgets. Nothing else has TV’s reach, scale and connection with audiences; no other form of advertising is as trusted. Online businesses in particular recognize the impact TV advertising has and have significantly increased their investment recently. This is something we expect to continue in 2016” said Lindsey Clay Chief Executive of Thinkbox.
Watch this for more insights on TV advertising.
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TV ad spend continues to rise in 2016
TV continues to be brilliant at creating success for brands both overnight and over the long term, receiving increasing amounts of investment year on year.
Traditional advertising mediums are showing an incredible resilience in terms of ad spend this quarter. Despite expectations that digital and mobile will rise to account for most brand ad spend, TV advertising is proving its unique qualities as a platform for advertisers.
According to figures collected by the Advertising Association and WARC total TV ad spend for the UK was up by 10.8% in the last quarter of 2015 and predicted to rise by a further 6.2% in 2016. Sporting events forthcoming in the year ahead are expected to have a positive impact on spot revenues. Video-on-demand saw a fantastic 15.1% increase in spend year-on-year as many advertisers came to realise the considerable advantages this platform provides.
Although TV advertising is showing its resilience, digital is continuing to grow in importance; the role of the internet in the contribution to overall ad spend has been significant as was mobile’s share of this internet expenditure (29%).
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