Digital adspend increased by 15% to £6.36bn in the first half of 2018
Digital advertisers spent a total of £6.36bn in the first half of 2018, up 15% year on year, according to the Digital Adspend report from IAB UK and PwC.
Search makes up half (52%) of this, increasing on par at 15% to £3.3bn. Next is non-video display at £1.33bn (+9%). Then video display £967m (40%). Classifieds remains at £726m and other remained at £41m.
Tim Elkington, chief digital officer of IAB UK, said: “With mobile devices accounting for 75% of all UK adults’ time online, it is safe to assume smartphone penetration continues to contribute towards the 15% year-on-year growth in adspend reported.”
Jon Mew, chief executive of IAB UK, added: “With today’s half-year announcement of gross revenue of £6.4bn and with the impressive year-on-year growth of 15%, it is essential we remain focused not only on building the future for advertising but on building a sustainable future.”
Source: The Drum
UK Adspend looking positive despite Brexit gloom
Adspend in the UK is forecast to grow for the eighth successive year in 2017, with predicted growth up from 5.8% to 7.2%, according to the latest figures from the WPP media agency group.
Upgraded growth forecasted for Group M this year – up from 6.3% to 7.2% for 2016.
Traditional media advertising spend is predicted to fall from -1.1% to -2.6% for 2016 and from +0.5% to -1.4% in 2017
TV ad spend is expected to be down 0.1% this year and up 1.0% in 2017.
A growth in cinema advertising is expected by 1% in 2016 and by 3.4% in 2017 following a huge increase of 21.5% in 2015.
Pure-play digital ad market share has risen to 52% this year and is predicted to grow up to 55% next year.
A 15% rise in digital display demand is likely for next year, with paid search accelerating and remaining the largest driver of growth.
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OOH: How much should you allocate to digital?
The optimal amount of an advertiser’s digital out-of-home (DOOH) budget should be 45%, according to a new effectiveness study by BrandScience.
The research analysed over 211 OOH ad campaigns between 2011-2015. It found when the costs of digital and traditional OOH are taken into account, the optimal proportion of DOOH is about 45 per cent. Above this level, returns are diminishing, the study said.
The report also makes recommendations for different types of advertisers on how to maximize ROI when combining digital and traditional OOH as part of a wider media mix with these given examples.
- Grocery retailers’ optimal OOH investment is about £7 million, which yields about 70 per cent in incremental value.
- Travel companies, the optimal OOH investment is about £2.7 million, which yields about 15 per cent in incremental value.
Sally Dickerson, the global chief executive at BrandScience, the researchers of the commissioned study said:
“We can clearly measure out-of-home effectively and we have proved that a slightly increased OOH spend – in many cases – delivers higher ROI.”
The report also said OOH improves the rate of return on investment for all other media used in an ad campaign, except for print.
Get in touch with us with a campaign brief, to see how we can incorporate traditional and digital out of home formats into your marketing mix, to help maximise and deliver the best return on investment for your budget.
Marketing Spend is on the up according to IPA Bellwether report
According to the latest IPA Bellwether report, marketing spend has grown at a phenomenal rate in the first quarter of 2015.
Budgets were up 11.8% in the early months of 2015, with the largest sector of growth being online and SEO. The internet, search and SEO are marking their 23rd successive quarter of growth in 2015.
This is the most upbeat assessment of the market signalled by the Bellwether report for the past 8 years! The report suggests that companies are continuing to invest their marketing spend in high level media formats such as TV, cinema and press whilst also looking to further increase their footprint in cost-efficient online marketing solutions.
There appears to be a growing optimism about marketing industry prospects with budgets now rooted in an ever strengthening macroeconomic climate. Paul Bainsfair, IPA Director General gave an encouraging comment about the report; “With over 10 successive quarters of growth in marketing budgets and the best budget year for marketing spend in a decade, this latest Bellwether provides welcome evidence of the extent to which clients recognise and value the significant contribution marketing communications makes to their business success. This stands us in good stead for what is set to be an unsettled few months politically.”
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