AA/WARC: UK ad spend reaches record £9.2bn in Q1 2024
Posted on Thursday 25 July 2024 | IAB UK
The latest Advertising Association / WARC Expenditure Report shows 9.3% increase in advertising spend was due to stronger than expected online growth
The latest figures from the Advertising Association and WARC show UK advertising spend increased 9.3% to £9.2bn during the first three months of 2024 – setting a new high for a first quarter period.
The findings show that growth was fuelled by digital, with online formats accounting for 79.7% of all UK spend in Q1 2024, as well as search (including retail media) up 12.0%, online display (including social media) up 12.8% and BVOD up 19.2%. You can find out more here.
Speaking about the latest data, Stephen Woodford, Chief Executive of the Advertising Association, said: “It is welcome news to see real-term growth and upgraded forecasts in the advertising market in Q1 this year, a positive sign that our industry is one of the driving factors in the UK’s economic recovery.
“This is a timely reminder of its dynamism as the new Government seeks to create an environment for growth, through political stability and a new industrial strategy.”
Expectations for both 2024 and 2025 have seen an uplift in the latest AA/WARC findings, as they now expect the UK advertising market to grow 7.7% to £39.4bn this year due to strong digital results, a snap UK General Election and a summer of sport.
|
Media |
Q1 2024 |
2024 forecast year-on-year % change |
Percentage point (pp) change in 2024 forecast vs April |
2025 forecast year-on-year % change |
Percentage point (pp) change in 2025 forecast vs April |
|
Search |
12.0% |
10.1% |
+1.2pp |
7.4% |
+1.0pp |
|
Online display* |
12.8% |
8.8% |
+2.4pp |
6.8% |
+1.3pp |
|
TV |
1.2% |
3.9% |
+1.3pp |
0.7% |
-0.2pp |
|
of which BVOD |
19.2% |
13.7% |
-0.4pp |
11.8% |
+0.7pp |
|
Out of home |
16.4% |
12.5% |
+5.3pp |
6.8% |
+1.2pp |
|
of which digital |
22.8% |
16.2% |
+6.7pp |
7.5% |
+5.9pp |
|
Online classified* |
1.1% |
1.2% |
+1.8pp |
4.7% |
+3.3pp |
|
Direct mail |
-2.5% |
-3.3% |
+1.6pp |
-3.3% |
No change |
|
National newsbrands |
-4.9% |
-2.8% |
+0.5pp |
-3.3% |
-1.3pp |
|
of which online |
-2.3% |
0.6% |
+1.4pp |
1.0% |
+0.2pp |
|
Radio |
7.0% |
5.5% |
+3.2pp |
3.7% |
+2.1pp |
|
of which online |
-5.9% |
4.0% |
-3.5pp |
5.8% |
+1.8pp |
|
Magazine brands |
-4.9% |
-3.5% |
+1.6pp |
-2.2% |
-1.5pp |
|
of which online |
-5.8% |
-1.2% |
+3.6pp |
2.8% |
+0.8pp |
|
Regional newsbrands |
-4.4% |
-3.3% |
No change |
-4.1% |
-2.1pp |
|
of which online |
-1.1% |
-0.3% |
+1.4pp |
-1.9% |
-2.1pp |
|
Cinema |
6.4% |
4.4% |
+1.9pp |
3.5% |
+1.3pp |
|
TOTAL UK ADSPEND |
9.3% |
7.7% |
+1.9pp |
5.5% |
+1.0pp |
|
Note: Broadcaster VOD (BVOD), digital revenues for news brands, magazine brands, and radio broadcasters are also included within online display and classified totals, so care should be taken to avoid double counting. Online radio includes targeted in-stream radio/audio advertising sold by UK commercial radio companies, together with online S&P inventory. |
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