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Mobile market to power UK advertising spend to £20.8bn by 2015

The UK advertising market is projected to enjoy growth of 5.5 per cent and 6.6 per cent in 2014 and 2015 to see total spend surge past the £20bn barrier for the first time.

This optimistic prognosis comes courtesy of the latest Advertising Association/Warc expenditure report which predicts the mobile ad market will be worth in excess of £2.5bn over the same period.

Last year UK ad spend clocked in at £17.88m, a 3.9 per cent rise on the year prior. Drilling down into these stats reveals large discrepancies within various sectors, with mobile nearly doubling with 95 per cent growth whilst video-on-demand (21 per cent) and digital news brands (19.5 per cent) enjoyed more modest growth.

Display advertising posted a turnaround in the second half of 2013, registering 5 per cent growth whilst recruitment spend reflected the strengthening wider economy with growth of 4 per cent in the fourth quarter – albeit from a low base having lost 60 per cent of its value since 2007.

It is mobile which is the undisputed star of the show however, with expectations high that it will account for a quarter of overall search spend by 2014 and a third by 2015 – whilst the becalmed desktop market continues to stagnate.

Tim Lefroy, chief executive at the Advertising Association said: "Another set of positive indicators to support the growth story – every pound spent on advertising returns six to GDP. The forecast explosion in mobile advertising and digital formats points to UK advertising at the centre of a global revolution in consumer information, service and choice.”

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