UK advertising spend has had its strongest second quarter since 2014, with ad-spend during Q2 2018 up 6.4% year-on-year (YoY) to £5.6bn. The first half of 2018 therefore saw an overall rise of 7.2% YoY to a total of £11.4bn.
The Advertising Association/WARC Expenditure Report, updated its forecasts for 2018. The report now predicts a 6.3% growth in ad-spend this year (up 1.5 percentage points from its previous forecast), followed by a 4.9% growth in 2019.
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23 Media Audits Comments – 2018 & Beyond
As we look beyond the half way stage for 2018, the first point to take into consideration for brands is that the predictions for the 2nd half of 2018 and into 2019 for the UK are very dependent on the Brexit negotiations. So far 2018 has been a story of two halves with evidence now showing confidence is declining in H2 2018 leading to a slow down in advertising spend levels especially across traditional media.
Our intelligence shows TV is likely to be hit hard over the last six months across revenue (and viewing) and this has led to 23 Media Audits to predict 2018 TV at zero growth compared to +3.5% at the mid-point of 2018.
Digital revenue covering search, mobile, programmatic display and video we still predict to be up +7.8% keeping the overall spend figures at a positive level and contributing to the total media spend rising to £21.6B for 2018.
Radio, OOH and Cinema we are predicating to show increases in revenue (+3.0% collectively) they account for 9.5% of the total advertising market. We are expecting further drops in the print market of -8.8% across Magazines, National and Regional print and that includes the digital revenues. Overall, we expect the market to be up +3.7% for 2018 as Brexit worries slow growth.