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.
Are you undecided on the best channels to suit your marketing objectives? Contact our friendly team on 02921 320 200 or email [email protected] for award-winning media planning and buying advice.
The battle between YouTube vs. TV
According to a report by Pixability, YouTube viewing is growing at the fastest rate ever, with watch time up 60% year on year globally.
There has been much debate over recent years over the battle between YouTube and television and what it means exactly for businesses. Some have branded ‘TV dead’ while others have said it still remains ‘the most effective and powerful medium of all time’ and continue to use it.
Global figures found in the YouTube report reveal:
- Channel subscriptions are up 47% year on year.
- Top 100 brands, are uploading a new video to YouTube every 18.5 minutes.
- The average mobile viewing session has increased by 50% to more than 40 mins.
- The number of advertisers running video ads on YouTube is up by 40%.
- Top 100 brands media spend is up by 60%.
Click here to see more YouTube stats from the Top 100 Global study – http://www.pixability.com/top-100-brands-2015/
Marketing Week recently noted while it seems YouTube is gunning for TV ad spend, in the UK, its success isn’t as rapid as the impressive Global stats above. According to Ofcom, YouTube accounts for just 3.5% of the UK’s total video consumption while TV is 81%. The gap narrows among consumers aged 16-24 – where YouTube accounts for 7.5% of video and TV accounts for 65% – by far.
TV advertising continues to grow, with UK revenue hitting a record high of £4.91bn in 2014, up 6% from the previous year, while the number of brands new or returning to TV advertising was more than 800, according to Thinkbox.
Make peace, not war and benefit from using both!
If budgets permitted, as with any large scale campaign it’s advisable to best spread your message to the relevant mediums that your target audience use, see and hear.
In fact, Thinkbox says the question shouldn’t be TV versus YouTube or online video, the IPA’s econometric study on “Advertising Effectiveness: the long and short of it” says the two complement each other extremely well.
Want to find out more on the benefits of using YouTube or television or both. Get in touch with The Media Angel to find out how your brand can be seen on a regional, national or global level.
Despite a digital shift, TV ad revenue sees little, if any decline
Industry researchers have predicted that more than half of the nation’s advertising budget is likely to be spent on digital media this year. Perhaps surprisingly, certain traditional media platforms continue to thrive, despite a digital shift.
Even with this rise in digital media, TV is expected to see its advertising revenue rise by 3% to £3.bn seeing little, if any decline. A spokesperson from the Strategy Analytic’s Report describes the future of television advertising as “simply experiencing a shift in the source of revenue from linear TV ads to online video”.
The UK’s weekly population reach for TV remains stable at 94.2% and the traditional TV set remains the screen of choice for 98.4% of the population. Viewing on other devices such as tablets, laptops and smart phones has grown year on year by 17% but has yet to overtake the traditional television set as the preferred way to watch content.
For advertisers, the steadily growing popularity of on-demand services and online platforms is great news particularly for small businesses. These services provide opportunities for reaching audiences on a far more manageable budget. Where national TV advertising is renowned for being massively expensive, the rates for ITV Player and 4oD for example are significantly less and will still reach a majority audience.
Do you want to reach up to 94.2% of the population in your area with your advertising? Contact The Media Angel on 02921 320 200 or drop us an email for impartial advice on the most suitable media mix to suit your objectives.