UK Online Ad Spend to go up to Record 43.6% by 2013


Figures released early this week by Group M show online has risen from a tenth of the ad market in 2005 to a projected 43.6 percent in 2013, with growth of 14 percent this year. Group M says that total UK advertising will rise 3.4 percent this year to £13.2 billion– more than in other major European countries, but lagging behind GDP growth (the difference between the two is crucial). The Olympic effect is real, but will boost sponsorships and brand partnerships rather than advertising spend. Here are the stats you need to know, plus why they matter.

ukadspend

What this means: An oft-heard expression in newsrooms and among senior publishers is that £1 in print translates to a penny, or less, online. With the drop in CPM rates from the heady heights of the mid-2000s, that’s no doubt true for many.  But here’s the thing: there are marketers who will increasingly only market online. By not embracing online ads – whether it’s search, mobile, display, video – you will be shutting out almost half the advertising spend in the UK.

Online has grown from 10.8 percent of total UK adspend in 2005 to a projected 43.6 percent in 2013. With a growth rate of more than 10 percent in 2013 it might only be a year before online is half of the UK’s ad economy.

 

Advertising spending in measured media in the U.K. is expected to show a 3.4 percent increase this year, a modest hike in light of the upcoming Olympics here yet robust compared to growth levels in other European countries.  The report, “This Year, Next Year: U.K. Media and Marketing Forecasts” said measured ad spending in the UK is expected to reach a total of £13.2 billion ($20.6 billion USD) in 2012, up from £12.7 billion ($19.9 billion) in 2011.  The report pointed out that in ad spending in digital communication platforms continued to show the most significant growth while spending in newspapers, both regional and national, showed the sharpest declines.

According to the report, digital spending will exceed £5.3 billion ($8.3 billion) in 2012 and is expected to reach £6 billion ($9.4 billion) in 2013, indicating an 11 percent increase.  Meanwhile, spending on regional newspapers will total £1 billion ($1.6 billion) in 2012 and is expected to drop to £971 million ($1.5 billion) next year—a decline of 11 percent.  Spending on national newspapers should fall from £1.2 billion ($1.9 billion) in 2012 to £1.1 billion ($1.7 billion) in 2013—a drop of 5 percent.

 

Read the Reference Articles:

Online dominates advertising economy as print continues slow decline | TheMediaBriefing

See GroupM’s Press Release

 

 

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