Marketing News

UK ad spend rises as mobile use soars

7 Feb 2019

Advertising spend in the UK rose 5.1% year-on-year in the third quarter of last year.

Data from the Advertising Association/WARC Expenditure Report shows ad spend for Q3 was £5.6 billion – the strongest growth since 2015. It estimates ad spend for the whole of 2018 at £23.5 billion – a growth of 6%.

Online advertising (mobile in particular) is the key driver of this growth. Between Q3 of 2017 and Q3 of 2018, online advertising grew by 12.3% and mobile grew 23.6%.

Digital radio ads, video on demand (VoD) TV and regional digital news brands were also up in the same period, rising 25.1%, 11.5%, 10.9% respectively.

Moving forward, indications suggest ad spend growth will slow to 4.6% in 2019.

Speaking about the findings, Advertising Association chief executive Stephen Woodford said: "UK advertising continues to perform strongly, now delivering its twenty-first straight quarter of growth and demonstrating the commitment of British advertisers to investing in the growth and success of their businesses."

Josh Krichefski, CEO at MediaCom agreed, noting that the growth reflects how important advertising is for businesses in the UK. He cited KFC's apology advert and Apple's "heart-warming Christmas campaign" as two examples of the brilliant ads we saw over the last year.

Krichefski admitted that creating unique and impactful campaigns in the face of growing market uncertainties can be a challenge. However, he believes the brands that get it right will see stronger brand metrics in the future.

With the average person spending more than one day a week online, it's not surprising that brands are forging ahead with digital advertising.

Krichefski continued: "I fully expect this investment in online media to remain steady, especially as businesses continue to tap into AI-powered adtech and start to take advantage of new advertising models around addressable TV and VoD."

If you're looking for your next marketing challenge, get in touch with Stopgap. We work with great clients, and have a range of exciting marketing roles to choose from.

 

 

Moving forward, indications suggest ad spend growth will slow to 4.6% in 2019.
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