The increasing willingness among firms to invest in digital is seeing British spend on advertising reach record levels as the sector responds to the ongoing economic recovery, according to a new report.
According to the Advertising Association/Warc Expenditure Report, new forecasts will see UK adspend jump by 5.5 per cent over the course of 2014, moving up to an impressive 6.5 per cent in 2015.
If this does come to pass, 2015 will see British investment in advertising and marketing go past the £20 billion mark for the first time ever, attesting to the rude health of the sector.
Pleasingly for marketers, this study comes hot on the heels of similarly positive predictions from respected sources such as the IPA’s Bellwether report.
CRM and other digital areas are one of the biggest drivers of the strong growth levels being recorded; mobile advertising increased by a startling 95 per cent from 2013, while broadcast video and digital national newsbrands also performed well.
“Another set of positive indicators to support the growth story – every pound spent on advertising returns roughly six. The forecast explosion in mobile advertising and digital formats points to UK advertising as the centre of a global revolution in consumer information, service and choice,” said Advertising Association chief executive Tim Lefroy.
Because the Advertising Association’s study is one of the only reports of its kind that uses advertising expenditure gathered from across the entire media landscape rather than relying on models or vague predictions, it is often considered the most reliable.
It revealed that internet adspend jumped by 15.6 per cent over the course of 2013, reaching £6.3 billion. As mentioned above, mobile was a major factor in this development, which is a genuinely remarkable growth story given the relative newness of the sector.
This development is matched by the decline in spend seen in more traditional areas such as print and magazines, according to the survey.