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Mobile Drives 2015 UK Ad Spending to Record Levels

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13
Dec
Mobile Drives 2015 UK Ad Spending to Record Levels

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According to the The Guardian, 2015 UK Ad spending hit a record high. 2015 UK Ad spending levels rose by 5.8% compared to 2014, and reached £9.42bn in the first half of the year. Mobile is now predicted to exceed the billion-pound barrier for the first time. Digital channels remain the force behind this growth, as Internet spending is up 13.3% for H1 to £3.9bn. Mobile makes up 79% of this growth, with ad spending increasing more than 52% to £1.08bn. 

Growth is noticeable throughout the industry, including both television and cinema forms. Only print has seen a decrease in revenue. 

“Advertising’s resilience points to the strength of the broader economy in the first half,” said Tim Lefroy, chief executive at the Advertising Association. “The UK leads the world in eCommerce and the trend to mobile means serving the public better ads in the right place at the right time.”

2015 UK Ad spending increased dramatically, but 2016 looks like it will be another record breaker. Ad spending is expected to demolish the £20bn barrier in 2016, with the Advertising Association’s media breakdown is as follows:  

  • Radio: Radio ad spending decreased by 2.2% to £116m in Q2, branded content excluded. Full-year growth is expected at 3.0% in 2015, and 2.3% with branded content included.
  • TV: Spot advertising “recorded solid YOY growth of 2.9% to £1,144m in Q2, compared to a quarter in which the FIFA World Cup was held last year.” TV spot advertising also enjoyed a fantastic Q1 via ad revenues rising to 11.5%. An “increase of 6.7% is forecast for 2015 as a whole.” 
  • Out of Home: YOY growth was strong at the beginning of 2015 with an increase of 9.7% in Q1, though it decreased 3.6% to £249m in Q2. 
  • Regional Newsbrands: These newsbrands saw a decline of 7.2% in ad spend in Q2 2015 compared to 2014. This “represents a 12.1% drop for print (to £246m) and a 24.0% increase for digital revenues (to £55m).” 
  • National Newsbrands: Print ad revenue decreased by a staggering 19.2% Q2 2015 to £239m. Digital ad spending, in comparison, increased 5.9% to £51m.
  • Magazine Brands: Ad spending declined by 6.8% in Q2. Print advertising saw a 11.0% decline to £168m, while digital saw an increase of 5.2% to £70m. 
  • Internet: Internet ad spending included a 12.8% increase in Q2 2015, which was followed by “revised growth of 13.9% in Q1 (+1.1pp).” Mobile made up 79% of total internet growth during H1, resulting in ad spending of £1,079m (up 52.1%). 

Cinema and direct mail ad spending saw increases as well. Separate Advertising Association research indicated the UK as the biggest mobile advertising spenders in Europe, and the third-highest spenders in the world following the United States and China. 

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