How did Q1 2017 shape up?
UK advertising trends have become increasingly complex over recent months. Understanding what’s driving growth over the short, medium and long-term is a challenge, but one that’s essential if brands and agencies are to optimise their investment and media owners are to respond to market demand.
The Advertising Association/Warc Expenditure Report is the definitive measure of advertising activity in the UK. It’s the only source that uses advertising expenditure gathered from across the entire media landscape, rather than relying on estimated or modelled data.
UK advertising spend starts 2017 in growth, despite a temporary TV slowdown
UK advertising expenditure grew 1.3% year-on-year in Q1 2017 to reach £5,318m – the 15th consecutive quarter of growth, according to Advertising Association/Warc Expenditure Report data published today.
Overall market growth was despite a drop of -6.2% in television advertising, its steepest fall since 2009. However, TV ad expenditure is forecast to recover in 2018 with 2.5% growth. Ad spend growth continues to be driven by internet (10.1%), with mobile spend (36.2%) particularly strong. Cinema recorded an outstanding quarter, growing 27.6% year-on-year in Q1 and outperforming forecasts by +20.0pp.
2018 World Cup is likely to boost ad spend in the wake of Brexit
Despite the global reputation of the capital’s advertising market, most people who work in the industry in the UK aren’t based in London. More than half (57%) work in the regions and cities outside the capital. Manchester is the largest of the city hubs in terms of the number of workers employed in the industry. There are some signs that concentrations of digital advertising expertise may be developing in these regional centres.