On the face of it the UK ad market is hanging in there despite a pretty grim economic picture: the latest quarterly figures (Q2) from the Advertising Association and WARC show spending up just 1% in the period to £9bn with a forecast of £35bn for the year. £37bn is forecast for 2024.
However about 80% of this is now online. With search accounting for about half this total (and still growing) they’re still pretty grim figures for most in advertising. Broadcast video on demand (BVOD) (+5.6%) and Out of Home (+4.4%, below) were two bright spots.
AA CEO Stephen Woodford says: “Advertising continues to show itself as a weathervane for the UK economy, with the advertising market expected to grow slightly more than the economy, with both barely in positive figures. Looking ahead to 2024, we expect to see more channels experience growth again, as the ad market grows to £37bn for the year.
“As we anticipate the General Election next year, the Advertising Association will continue to demonstrate advertising’s contribution to a strong economy, not least that brands that continue to invest in advertising during a downturn are more likely to post better returns when emerging from tough conditions.”