Advertising spend forecasts up despite Brexit uncertainty, with internet driving growth
Spending in the UK advertising market is expected to grow this year despite uncertainty around June’s Brexit vote.
The Advertising Association and Warc report has forecast 5.2 per cent adspend growth in 2016, up one percentage point from the previous estimate, to £21.1bn. The total spend figure totalled £20.1bn in 2015.
However, forecasts for 2017 have been revised down 0.5 percentage points to 3.3 per cent growth.
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Internet advertising is expected to be up 15.7 per cent to nearly £10bn in 2016 as a whole, with mobile internet advertising spend performing even better, up 45.6 per cent.
Newspapers and magazines are to be the worst performing, with spending in all of these areas shrinking this year, while TV advertising will grow 2.4 per cent – revised down 1.2 percentage points.
Within broadcast, video-on-demand advertising spend is expected to grow 17.1 per cent this year and by the same amount next year.
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“Investment in UK advertising remains strong this year, and the trend towards digital and mobile continues – but the medium term is more complex,” said Advertising Association chief executive Tim Lefroy.
“The government should avoid any regulatory uncertainty that might affect advertising's stimulus to the economy.”