UK advertising market grows faster than expected

UK advertising expenditure grew at its fastest rate for three years in the first half of 2014, according to figures released by advertising trade body the Advertising Association/WARC.

Growth was particularly strong in the second quarter, which saw significant increases across TV, radio and the internet, leading to a total of £5.515 billion for the quarter, according to AA/WARC. Over the first six months taken together, ad spend grew by 6.3% year-on-year, leading the trade body to make an upward revision to its full-year forecasts to 6.4%.

TV advertising is now expected to grow by 7.8% this year, up from the 3.6% growth recorded in 2013. TV accounted for £4.642 billion in 2013, including £126 million of broadcaster video-on-demand advertising. The latter is expected to grow by 27% this year.

The AA/WARC expects the overall ad market to soften next year, turning in growth of 6.5%, down slightly on earlier expectations. TV ad growth is expected to amount to 6.6%.

Internet advertising accounted for £6.281 billion in sles last year, and is expected to to grow by 15.1% this year, compared with growth of 14.1% last year. the Internet ad market is expected to growth by 13.1% next year, with mobile – which accounted for £1.021 billion in sales in 2013, growing by an expected 56% this year and 42.8% next year.

“Growth at twice the rate of UK GDP is quite a headline, but the real story is of digital and creative leadership in e-commerce.  As the Eurozone wobbles, it’s a reminder that our consumer economy is central to the UK’s economic narrative,” said Tim Lefroy, CEO of the Advertising Association.