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Advertising Association and WARC data shows adspend increase

The latest figures from the AA/WARC ad spend report signal steady consistent growth in spend.

Georgie Moreton

Deputy Editor, BITE Creativebrief

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While the budget hit businesses and the Bellwether rang with caution, the latest figures from the AA/WARC ad spend report show a steady and consistent increase.

“The advertising industry is once again driving UK growth, helping businesses to compete, promote innovation and support jobs,” says Stephen Woodford, CEO of the Advertising Association.

According to the latest AA/WARC report, during the second quarter of 2024, UK advertising recorded £10bn spend, marking a 13.4% increase.

The spend rate was 4% ahead of forecast and as a result, AA/WARC expects the UK’s ad market to reach £43.1bn spend next year, a rise of 6.5% and an uplift of 1.0pp from July’s forecast. Strong spend is attributed to more favourable trading conditions and higher consumer spending.

Culture-fuelled growth

Figures for April to June show that online formats experienced the strongest growth. Online display at 21.6%, search at 12.7% and out of home at 17.0%. TV saw a large uplft from a stellar summer of sport, kicking off with the Men’s Euros. Growth at 9% represents the strongest quarter for TV in over two years while regional newsbrands (+1.9%) and magazines (+0.5%) registered their first growth since the pandemic bounce back of Q2 2022.

“Advertising has a vital role in funding culture, media and sport – and the results of Q2 show how advertising can play a fundamental part in supporting the success of events such as the Men’s Euros, the Olympics and the Paralympics,” says Woodford.

As inflation begins to ease and consumers slowly gain confidence to spend, the advertising industry in the UK is set to register growth ahead of other key European markets, such as France (8.0%), Spain (5.7%), Italy (5.4%) and Germany (4.0%) in current prices.

“The strong growth across the online sector in particular during the first half of 2024 has put the UK’s ad market on course for its best year since the millennium, if the post-pandemic recovery year of 2021 is discounted,” added James McDonald, Director of Data, Intelligence & Forecasting, WARC.

Following a budget that champions ‘working people’, higher consumer spending is likely to continue. While businesses might feel the pinch, holding strong on spend and following a path carved by culture could spell stable growth for the industry.

The quarterly Advertising Association/WARC Expenditure Report is the definitive guide to advertising expenditure in the UK, with data for all key advertising media and sub formats dating back to 1982 and forecasts spanning eight quarters ahead.

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