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UK advertising expenditure during the first six months of 2019 was 5.2% higher than a year earlier, at £12.0bn, according to the latest Advertising Association/WARC Expenditure Report, which predicts full year spending of £24.7bn.
The data show that adspend rose 5.8% year-on-year to reach £6.0bn in Q2 2019, marking UK advertising’s 24th consecutive quarter of expansion.
Overall market growth is being driven by increased spend on online advertising, which saw rises across most formats.
The report shows adspend growth for 2019 is forecast to rise 5.0% and reach £24.7bn, with the UK’s ad market expected to grow a further 5.3% in 2020. The predicted full year growth figure for 2019 is an upgrade of 0.4 percentage points on the figure forecast at the last release of adspend data in July this year.
“These very encouraging adspend figures for Q2 2019 cover the period immediately following the original Brexit date of March 29, demonstrating the continued strength of UK advertising during a time of political uncertainty. Advertising’s dynamism is shown by the growth recorded across many different formats,” commented Stephen Woodford, Chief Executive, Advertising Association.
These figures are positive for our industry and are good indicators of the resilience of the UK economy.
Stephen Woodford, Chief Executive, Advertising Association
Digital ad formats for radio broadcasters witnessed a year-on- year rise of 15.9% and online national newsbrands recorded growth of 15.6% over the same period. Digital out of home – not included in online totals – experienced growth of 17.2%.
The report reveals particularly strong growth in Q2 2019 compared to Q2 2018 in TV video on demand (VOD) and cinema. TV VOD saw an increase of 20.0% in Q2 2019 while cinema recorded a very impressive rise of 49.6%. The sector benefited from the entry of a number of new advertisers in comparison to the same period in 2018, boosting growth substantially.
“An upgrade to our 2019 projection of almost half a point is reflective of stellar online growth, as well as over-performance for a number of traditional channels against the expectations we laid out in July,” said James McDonald, Managing Editor at WARC.
There is little in the data we receive from media owners across the industry to suggest an impending downturn.
James McDonald, Managing Editor at WARC
The full report and tables can be accessed through the WARC website.
Sourced from Advertising Association, WARC
