Thursday 30 January 2020 12:01 am

UK ad spend grows as brands splash cash on streaming hits

Fanatical film and TV fans helped drive up UK advertising spend in the third quarter, as the video on-demand and cinema sectors continued their recent run of good form.

Brands splashed out £5.97bn over the period, up 5.6 per cent year on year but down marginally on the second quarter.

The figures, which mark the 25th consecutive quarter of growth, showed that online advertising once again drove overall growth, with increases across every format.

But broadcaster video on-demand (VOD) services such as All 4 and ITV Hub were among the biggest risers, with ad spend growing almost 17 per cent.

A slate of blockbuster titles also prompted a 46.5 per cent growth in cinema ad spend, though this remains the smallest sector in actual terms.

Adrian Coleman, group chief executive and founding partner of VCCP, said TV had benefitted from “water cooler” moments following hit shows such as Love Island.

“That’s why TV remains the most shareable piece of social currency and brands need to be there to be part of that conversation,” he said.

“The multitude of channels, including digital platforms such as VOD, has opened up the market to disruptors and smaller brands, reducing the cost of entry, and there are many more people involved.”

The figures, published by the Advertising Association (AA) and Warc, revealed another strong quarter for out-of-home advertising, as digital billboards and bus stops continue to attract brands.

The outdoor advertising sector, which has enjoyed strong growth in recent quarters, now pulls in more spend than newsbrands.

National print newspapers saw growth of just 0.4 per cent amid tough market conditions, though spend on their online counterparts rose 6.5 per cent.

“The figures show ad spend increases across a range of media with digital formats and sectors continuing to drive growth,” said AA chief executive Stephen Woodford.

“These media spend figures are particularly impressive given this was a period of Brexit and political uncertainty and very low overall economic growth.”

The report forecast full-year growth of £24.8bn in 2019, representing an increase of 5.2 per cent year on year. Ad spend is then expected to top £26bn in 2020.

Main image credit: ITV