1. UK ad spend better than expected
UK ad spend is set to hit £18.9bn in 2017, a 5% increase on last year
It is expected to rise 4.8% to £19.8bn in 2018.
Digital advertising is expected to hold a 60% share of UK ad investment in 2018, due to: rising digital audiences, the growth of ecommerce and a preference among marketers for driving near term ROI.
2. UK online sales growth stalls
Online share of grocery and FMCG sales has reached 7.5% in the UK – the highest share in Europe.
But growth is stalling as the market matures. The UK e-commerce growth rate is 7.6%, down from 9.8% last year.
This compares to a global increase of 30%.
Online purchases now account for 4.6% of all FMCG sales worldwide.
Source: Kantar Worldpanel
3. The value of consumer data
UK consumers value their data at £254 per year on average, while US consumers value it at £183.
Despite the price tag, many consumers feel uninformed about their data – 51% of UK respondents and 31% of US consumers say they do not feel informed enough to value their data.
62% were not aware their data was encrypted and could not be used to identify them as an individual. Just 18% understood what data was being gathered for advertising purposes.
4. Readers’ relationship with publishers has an impact on advertising
The relationship a reader has with a publisher has far more impact on the effectiveness of online ads than the surrounding editorial content, suggesting concerns around brand safety may be misunderstood.
A study compared the conscious and subconscious reactions of 4,370 people, who were served ads on websites either with or without publisher branding. It revealed that ads on the publisher-branded sites increased consideration for the advertiser by 60% compared to the ads on the site without publisher branding.
For readers with a close relationship to the publisher, consideration for the advertiser was 152% higher than among those who saw the ads on the site without publisher branding.
Source: Inskin Media, Research Now and Conquest Research
5. TV is the best medium for product launches
TV draws the most attention for new product launches. 44% of Brits say they first notice new products when they appear on TV, far higher than social media (12%) and online ads (9%).
Only one in eight people actually become aware of launches via social media, and just over one fifth (22%) of them share the information online.
Worryingly, 61% of UK consumers are not aware of any new launches from the past 12 months at all. Plus, only 3% believe celebrity endorsement makes launches stand out, and just 7% say they noticed a launch because a celebrity or influencer mentioned it.
Source: Five by Five