Half of UK advertising spend in 2015 will go on the internet and mobile devices, according to the latest Advertising Forecast from
Strategy Analytics.
Nearly £8.0bn is forecast to be spent on digital advertising in 2015 – over twice that spent on TV (£3.8bn, 24% share). Print follows at £2.5bn (16%). Outdoor (£910 million), radio (£492m) and cinema (£179m) will account for the remaining 10%.
“Digital crossing the 50% share threshold is a seminal moment in the history of the ad industry, particularly factoring in its dominance in the UK compared to globally,” said Michael Goodman, co-author of Strategy Analytics’ report (pictured) . “Digital accounts for a third of ad spend in Western Europe, 30% globally and just over a quarter in the US – where TV still rules the roost.
By 2018, digital’s share (56%) in the UK will be two and a half times that of TV (23%). Goodman notes: “However, print will be the major casualty, falling to 12% market share in 2018 – less than a third it held a decade earlier.”
Growth
Online and mobile ad spend is forecast to grow 9.5% in 2015, compared to 1.6%
for traditional advertising. UK ad spend, overall, is predicted to grow 5.4% to
£15.8 billion.
After digital, cinema (4.8%) is the fastest growing ad format, then TV (up
3.0%). Outdoor will grow 1.1% and radio 0.3%.
Print is the only ad format forecast to decline in revenue, however, it’s also
the only format whose 2015 growth rate (down 0.2%) is an improvement on 2014
(down 1.7%). For all other formats, growth rates in 2015 are lower than in
2014.
“UK ad revenue growth looks particularly
strong, growing at a 60% faster rate than the US and Western Europe,” said
Leika Kawasaki, co-author of the report. “It’s certainly more encouraging for
print in the UK, with only a marginal decrease compared to a hefty 8% decline
in the US and a 3% decline globally. However, outdoor (about 5 times less) and
radio will experience much slower growth in the UK than globally.”
Digital ad growth will be driven mostly by mobile (23%), social media and video (both 18%). However, search will still command half of digital ad revenues in 2015.
Half of UK advertising spend in 2015 will go on the internet and mobile devices – latest Advertising forecast from Strategy Analytics
— Brad Insight (@BradInsight) February 18, 2015