UK adspend growth at three-year high

UK adspend: Q2 results show a rise
UK adspend: Q2 results show a rise

Advertising spend in the UK grew at its fastest rate for three years in the second quarter of this year.

Figures released by the Advertising Association/Warc show adspend increased by 8.5 per cent year on year to reach £4.5 billion for the second quarter of 2014.

Across the first half of 2014, total UK adspend rose by 6.3 per cent year on year. This has led to a 0.4 per cent upward revision for the full year forecast to 6.4 per cent for 2014, but a 0.2 per cent downward revision to 6.5 per cent for 2015.

The quarter was boosted by double-digit growth for TV, radio and the internet, with the latter growing by 17.2 per cent year on year in Q2.

Overall internet advertising is expected to rise by 15.1 per cent by the end of the year fuelled by the 56 per cent increase in mobile adspend.

Mobile is also predicted to experience the biggest increase next year, rising by 42.8 per cent.

Cinema adspend has also bounced back from 2013, when it fell 14.2 per cent compared to 2012. It is expected to increase by 6.7 per cent by the end of this year and continue to grow by 5.5 per cent in 2015.

TV’s spot advertising recorded a significant rise of 10.7 per cent year on year to £1.1 billion in Q2, boosted by the World Cup.

Growth for the first six months stood at 8.3 per cent, but this is expected to lessen in the second half. Overall TV adspend is expected to climb 6.7 per cent year on year in 2014.

Video-on-demand adspend is buoyant and expected to rise 27 per cent year on year in 2014 and 31.3 per cent in 2015.

In contrast, print national, regional newspaper and magazine adspend continues to fall, while adspend across news and magazine brands’ digital versions continue to rise.

Adspend across direct mail is expected to fall 1 per cent overall in 2014 but will increase by 1 per cent in 2015.

Tim Lefroy, chief executive at the AA, said: "Growth at twice the rate of UK GDP is quite a headline, but the real story is of digital and creative leadership in e-commerce.

"As the Eurozone wobbles, it’s a reminder that our consumer economy is central to the UK’s economic narrative."

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