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UK advertising market grows faster than expected

AA:WARC ad spendUK 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.