UK ad spend to top £20bn for first time in 2015

Ad spend in the UK is predicted to top £20bn for the first time in 2015 as the advertising market’s recovery continues to gather momentum, according to a report.

UK ad spend to top £20bn for the first time in 2015.

The latest Advertising Association/Warc report says advertising spend was £17.9bn last year, a 3.9 per cent year on year increase. That figure is expected to increase by 5.5 per cent this year and 6.5 per cent in 2015, when ad spend will hit £20.8bn, as the UK economy continues its recovery.

Investment in mobile helped fuel last year’s growth, with mobile ad spend almost doubling (up 95 per cent) to more than £1bn. Mobile will remain the fastest growing ad medium through 2015, although the rate of growth will slow to 45.5 per cent in two years’ time, the report suggests.

Total internet ad spend growth is also expected to slow, falling to 12.2 per cent in 2015, from 15.6 per cent last year.

By comparison, more traditional ad formats such as TV, radio, out-of-home and cinema are all expected to see growing investment. TV ad spend increased by 3.6 per cent last year to £4.6bn, with that rate set to accelerate to 7.3 per cent in 2015.

The report strips out growth for broadcast video on demand for the second year, showing the rate decelerating to 21.2 per cent, from 73.3 per cent in 2012. TV ad spots, by comparison, are expected to see spend rise this year to 5.5 per cent, boosted by the football World Cup.

Tim Lefroy, chief executive at the Advertising Association, says: “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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