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
Advertising spend in the UK grows for 19th consecutive quarter
The UK advertising industry has saw spend rise ahead of forecasts in the first quarter of 2018. Up 5.9% year-on-year to £5.7bn, marking the 19th consecutive quarter of growth.
“Our latest advertising expenditure figures reflect the resilience of the wider UK economy, where consumer confidence is improved, and the jobs market remains very strong. UK advertising continues to show steady growth with more businesses investing more spend in advertising,” said Stephen Woodford, chief executive at the Advertising Association.
“This investment boosts company profits and overall GDP, creates more jobs and helps our media sector to continue to invest in the creative content and technology that the public values.”
According to the AA/Warc report, the biggest drivers of spend in the quarter included radio, which was up 12.5% to record its strongest growth in four years. And digital where spend was up 10.8%, specifically search spend which now accounts for almost three in ten pounds spent on advertising in the UK.
Out of home and TV were also up 5.3% and 5% respectively. Along with print display ad revenue for national newsbrands which rose for the first time in seven years.
It comes in the face of continued concern over the ongoing Brexit negotiations. The AA, the Internet Advertising Bureau (IAB), Accenture and Deloitte last month joined forced to outline their demands in a letter to prime minister Theresa May.
“If government can secure a good outcome from the Brexit negotiations and introduce a business-friendly immigration policy, we should continue to see sustained UK market growth and continued export success for advertising,” continued Wooford.
In spite of the uncertainty, adspend growth forecasts for this year and next have been upgraded, by 0.6 percentage points to 4.8% and 0.7 percentage points to 4.5% respectively. If proved correct, this would conclude a decade of continuous growth, and result in investment of over £24bn in 2019.
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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.”
Our team are here to help you benefit from the power of Cinema as an advertising platform. Get in touch with us on 02921 320 200 or email [email protected] for award winning media planning and buying advice.
Radio ad spend grew by 7.8% in 2014…
Research conducted by RadioWorks has delivered some exciting predictions for radio advertising in 2015. Where radio saw a healthy 7.8% growth in ad-spend last year, a rise of 5.7% is predicted for 2015.
These strong increases in spend are explained by digital audio service’s rising popularity among audiences, with reach figures last year escalating twofold in the space of just 18 months! 12 million unique listeners were reached by audio services in the spring of 2014, and this is expected to rise to 20 million at the start of 2015.
According to reports conducted RAB, brands using radio get their money back nearly eight times over on average!
Such data proves that advertisers are recognising the potential of radio’s significant scale and influence; allocating larger chunks of their marketing budgets to the medium and enjoying maximised returns. With one of the lowest levels of advertising avoidance, radio allows marketers to reach out to millions of new customers as well as current, existing consumers with essential messages at key activity moments across the day. Radio ads are so frequent and high in reach that a brand can create a disproportionately large share of mind for itself.
The time is now to realise the potential in radio advertising investments; January is the perfect time to connect with open-minded, fresh thinking listeners.
Contact The Media Angel today and get started on your plans to make the New Year your most successful yet.