Following a return to pre-recession levels in 2012, UK advertising spend continued to show healthy growth in the first quarter of 2013, according to the latest Advertising Association/Warc Expenditure Report.
UK adspend increased by 2.4 per cent in the first quarter of 2013 to £4.14 billion (€4.91bn). This follows a strong performance in 2012, as adspend broke through the £17 billion barrier, the most spent on advertising in the UK since 2007.
Updated forecasts now predict total adspend growth of 2.6 per cent in 2013, followed by a rise of 4.9 per cent in 2014.
Q1 2013 Expenditure Report highlights
· Q1 growth was fuelled by an 11.1 per cent increase in internet spend, driven by the continued strong growth of mobile advertising.
· TV spot advertising also increased ahead of trend in Q1 2013, rising by 5.6 per cent.
· Total adspend across newsbrands and magazine brands fell by -7.9 per cent and -11.6 per cent respectively, but these declines are forecast to slow in 2013/14, spurred by strong growth in digital revenues for each channel
· Following a strong Olympic year, out of home spend grew by just 0.1 per cent in Q1 2013 and is predicted to decline for the year as a whole, but the rate of decline has been cut from -2.1 per cent to -1.5 per cent, with the forecast for 2014 lifted from 3.9 per cent to 4.6 per cent.
· Of the other media, cinema increased 1.6 per cent in Q1 2013, direct mail fell by an estimated 1 per cent, and radio fell by 2.9 per cent.