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Advertising Association Warc Mobile Advertising

Annual ad spend to break the £20bn barrier in 2016, finds AA/Warc report

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By Jennifer Faull, Deputy Editor

April 20, 2015 | 2 min read

Advertising Association (AA) chief executive Tim Lefroy has warned advertisers to stop thinking of digital as “something that lives on the internet” on the back of its latest report, which found over the past year the UK ad industry grew at its highest rate since 2010.

In 2014 the industry grew 5.8 per cent to £18.6bn, according to figures released today in The AA/Warc Expenditure Report. This growth is forecast to continue, with ad spend predicted to break the £20bn barrier in 2016.

Internet advertising and mobile drove the lions share of this growth, up 15 per cent and 58.9 per cent respectively. However, digital advertising through traditional channels also took off in 2014 such as broadcast video-on-demand (VOD: up 15.1 per cent), digital national (up 16.4 per cent) and regional (up 24.7 per cent) for newsbrands, a trend also reflected in magazines and outdoor.

Lefroy said the figures highlight that ‘digital’ is in cinema, outdoor, news, and TV.

“The trend is transforming our media, driving growth and keeping UK advertising ahead of the global competition,” he said.

Mobile will continue to grow at pace and is forecast to grow a further 32.4 per cent in 2016. Broadcaster VOD will be the next biggest driver of spend, up 20.6 per cent, followed by digital spend with regional newsbrands (up 15.1 per cent).

However, overall spend with news brands, both regional and national, will continue to fall by 2.4 per cent and 0.2 per cent respectively.

Advertising Association Warc Mobile Advertising

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