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UK Adspend Growth Slowest in Four Years

Trend Summary: UK advertising expenditure grows at its slowest rate in four years.

According to the Advertising Association/WARC Expenditure Report published today, UK advertising spend recorded its ...

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... slowest growth rate since Q2 2013.

Although the overall market expanded, traditional media had a difficult start to the year, with cinema the only non-digital medium to grow during the quarter.

More significantly, total TV advertising spend dipped 6.2% in Q1 2017, the most severe fall since 2009. Radio (-0.1%), out of home (-0.6%), direct mail (-1.5%) and newsbrands (-11.2%) also recorded a decline in spend during the quarter.

According to James McDonald, Senior Data Analyst at WARC: “The latest data show that large retailers – particularly supermarkets – and major food brands reined in their TV spending by 25% during the first three months of 2017, instead committing to cutting prices on the shelves as household expenditure wanes.” 

Total TV ad expenditure is forecast to fall 1.9% this year, a 1.4 percentage point downgrade since the last AA/WARC forecast in April. However, losses are expected to be regained in 2018, with ad revenues growing 2.5%, partially due to the men’s FIFA World Cup.

Read the original unabridged Warc.com article.

[Estimated timeframe:Q3 2017]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: Warc.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=7237

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