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- 6% growth estimated for FY2018 adspend
- Further growth of 4.6% for FY2019 amid Brexit uncertainty |
LONDON, Jan 28, 2019 - (ACN Newswire) - UK adspend rose 5.1% year-on-year to reach GBP5.6bn in Q3 2018, marking the 21st consecutive quarter of market growth and the industry's strongest third quarter of the year since 2015. This record investment highlighted in today's Advertising Association/WARC Expenditure Report underpins the preliminary estimate for 2018 adspend of GBP23.5bn - meaning the industry will have grown +6.0% year-on-year.
The positive figures come ahead of the Advertising Association's LEAD summit on Wednesday (January 30th), which will look at the key themes of Trust, Trade & Transformation in the UK's advertising industry. Predictions of 4.6% growth for UK advertising in 2019 come amid calls from the industry for a positive deal for business from Brexit negotiations with minimal disruption.
Key headlines from the report show:
- Q3 2018 was the 21st consecutive quarter of adspend market growth
- UK adspend rose 5.1% year-on-year to reach GBP5.6bn in Q3 2018
- The preliminary adspend estimate for 2018 remains at GBP23.5bn - meaning growth of +6.0% year-on-year
- Q3 2018 saw the strongest third quarter growth since 2015 - the first nine months of 2018 also saw the strongest growth since 2015
- Mobile saw a growth rate of 23.6% y-o-y in Q3, with overall internet growth at 12.3%
Overall market growth is being driven by increasing spend on online advertising, which is expected to grow 9.8% this year, following on from an estimated 13.4% rise in 2018.
In the individual formats, the positive story for digital was reflected across the board. Notably high growth was recorded for digital radio ad formats, with a year-on-year rise in Q3 of +25.1%, and in VoD TV at +11.5%. Regional digital newsbrands witnessed growth of +10.9%, with national digital newsbrands measuring +3.7% growth, and digital magazine brands +1.5%.
Stephen Woodford, Chief Executive at the Advertising Association 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"
"As the clock ticks down to our departure from the EU, it is crucial the Government provides the certainty we are all seeking in business. We are predicting continued adspend growth of 4.6% in 2019 and an agreement with the EU that keeps disruption at a minimum and keeps trade and talent flowing will greatly help this growth. UK advertising is the best in the world and we need a deal that ensures we keep it that way."
James McDonald, Data Editor at WARC commented:
"Our projection of 4.6% growth in the UK's ad market this year is firmly based on a business-favourable outcome from the EU withdrawal agreement, and would mark a decade of continuous expansion since the last advertising recession.
"Further, a preliminary estimate of 6% growth in advertising investment last year represents a faster rate of expansion than was recorded in 2017, and is therefore indicative of an industry in rude heath. This is particularly true in relation to digital ad formats, all of which are currently forecast to attract higher levels of investment in 2019."
For press enquiries please contact:
WARC
Amanda Benfell, Head of PR & Press
amanda.benfell@warc.com
T:+44 (0) 20 7467 8125
Advertising Association
Matt Bourn, Director of Communications
matt.bourn@adassoc.org.uk
T:+44 (0) 20 7340 1100
Matthew Evans, Communications Manager
matthew.evans@adassoc.org.uk
T:+44 (0) 20 7340 1100
Ellie Mason, Communications Executive
ellie.mason@adassoc.org.uk
T: +44(0) 20 7340 1100
About the Advertising Association/WARC Expenditure Report
The Advertising Association/WARC quarterly Expenditure Report is the definitive guide to advertising expenditure in the UK. Impartial and independent of any media channel or agency affiliation, it is the only source of historical quarterly adspend data and forecasts for the different media for the coming eight quarters. With data from 1982, this comprehensive and detailed review of advertising spend includes the AA/WARC's own quarterly survey of all national newspapers, regional newspaper data collated in conjunction with Local Media Works and magazine statistics from WARC's own panels. Data for other media channels are compiled in conjunction with UK industry trade bodies and organisations, notably the Internet Advertising Bureau, Outsmart, Radiocentre and the Royal Mail.
All data are net of discounts and include agency commission, but exclude production costs. The survey was launched in 1981 and has produced data on a quarterly basis ever since.
Methodology for WARC's quarterly forecasts
Analysis of annual adspend data over the past 35 years shows that there is a link between annual changes in GDP and annual changes in adspend (after allowing for inflation, and excluding recruitment adspend). Over this period, GDP changes account for about two thirds of the change in adspend. WARC has developed its own forecasting model to generate forecasts for two years based on assumptions about future economic growth. The model provides an indication of likely overall spend levels - adjusted to allow for short-term factors (Olympics, World Cup etc).
The Expenditure Report (www.warc.com/expenditurereport) launched online in February 2010 and combines data from the discontinued print publications the Quarterly Survey of Advertising Expenditure and the Advertising Forecast. It is relied upon daily by the world's largest brands, ad agencies, media owners, investment banks and academic institutions. Alongside over 200 ready-made tables, subscribers can create their own customised tables for analysis of different media and time periods, as well as track the different media's share of adspend. All reports can be exported from the online interface. An annual subscription is priced at ?760 for AA members and GBP1,175 for non-members.
About the Advertising Association
We are the only organisation that brings together agencies, brands and media to combine strengths and seek consensus on the issues that affect them. Through wide-reaching engagement and evidence-based debate we aim to build trust and maximise the value of advertising for all concerned.
About WARC
WARC provides the latest evidence, expertise and guidance to make marketers more effective. WARC's mission is to save the world from ineffective marketing.
WARC's clients include the world's largest brands, advertising and media agencies, media owners, research companies and universities. They rely on WARC for rigorous, unbiased information and advice on almost any advertising and marketing issue, which WARC delivers via best practice guides, case studies, research papers, special reports and advertising trend data, as well as via webinars, awards, events and advisory services.
WARC collaborates with more than 50 respected industry organisations globally including: The Advertising Research Foundation, Cannes Lions, Effie Worldwide, Association of National Advertisers, ESOMAR, 4A's, IPA and DMA.
WARC was founded in 1985, and has offices in the UK, US and Singapore. In July 2018, WARC became part of Ascential plc, the global specialist information company.
Topic: Press release summary
Source: Warc / Advertising Association
Sectors: Media & Marketing, Advertising
https://www.acnnewswire.com
From the Asia Corporate News Network
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