UK ad market booming while newspapers lose £155m in print and watch digital revenues slow
The UK ad market enjoyed its fastest level of growth in past five years in 2015 however newspapers failed to keep pace as digital revenues slowed and print plummeted by more than £150m.
A new report by the Advertising Association revealed that the total UK ad market grew by 7.5 per cent to £20.1bn last year, marking the highest level of growth since 2010.
National newspapers bucked the trend however as they suffered an overall 11 per cent decline in ad spend to £1.2bn last year. Tabloid titles were hit hardest with a 16.2 per cent fall to £565.4m in print ad revenue while, broadsheet national newspapers saw print ad revenue decline by 9.6 per cent to £435m.
Regional newspapers took less of a hit with only a 6.2 per cent fall in total ad spend to £1.17bn while digital advertising revenue grew 14.8 per cent to £200m.
The report’s findings illustrate the changing tides in advertisers’ spending off the back of the growing popularity of Google and Facebook, who continue to shore up newspapers' revenue.
Unsurprisingly the UK’s digital ad market had a good year with 17.3 per cent growth year on year to £8.6bn. Within that growth mobile accelerated 61 per cent to £2.6bn.
TV meanwhile also reported a bolstering 2015 with ad revenue jumping 7.3 per cent to £5.2bn while the on-demand market increased by 21 per cent to £175m.
The findings with the Advertising Association’s report will not come as surprise to the industry: newspapers’ print ad revenue has been steadily declining for years, however the slowdown in the digital revenue is a clear indication that newspapers need to address the threat that Google and Facebook pose.