Adspend rises in UK

13 April 2012

LONDON: Adspend levels rose by almost 3% in the UK last year, a rate of growth expected to accelerate in the next two years, according to the latest AA/Warc Expenditure Report.

The Expenditure Report, which can be accessed by subscribers here, revealed ad revenues climbed by 2.7% year on year at current prices in 2011, to £16.1bn.

Looking ahead, the study predicted growth could hit 3.8% in 2012, outpacing the expansion forecast for the rest of the economy. Figures should then rise by a further 4.9% in 2012.

The internet enjoyed a 16.8% surge in value, to £4.8bn, in 2011. As a result, the medium now holds a 29.7% share of the market. In 2012, the web is set to post an 8.9% leap.

Elsewhere, TV saw a 1.9% lift in ad sales last year, generating £4.2bn, and thus accruing 25.8% of the total market. Broadcasters should witness a 2% increase in demand this year, the analysis argued.

Less favourably, the press category endured an 8.4% slide in returns in 2011 to £3.9bn. Within this, business magazines were down by 14.6% and regional newspapers were off by 9.6%.

The pace of decline recorded by print publications is due to slow to 0.9% in 2012, but the channel's overall share is likely to fall further. Figures on this measure slipped by 3% last year to 24.5%.

More positively, out-of-home adspend increased by 0.6% to £886.3m in 2011 and radio was up by 1.6% to £427m. Cinema, however, registered a 6.6% contraction to £172.1m.

Tim Lefroy, chief executive at the Advertising Association, said: "These forecasts show renewed optimism for UK and for our leadership in the digital economy.

"This uptick for advertising is a strong indicator for growth, and we are looking at evidence that an advertising resurgence could actively boost GDP."

For more information about the AA/Warc Expenditure Report, click here.

Data sourced from Warc