UK advertising spend surged unexpectedly, driven by digital growth and past weaker performance.
- Ad expenditure reached £10 billion in the second quarter, marking a 13.4% increase.
- Digital formats dominated, with four out of every five pounds spent in this sector.
- The industry forecast for 2024 estimates spending will exceed £40 billion.
- Significant growth was seen in online display, search, and out-of-home advertising.
The UK advertising sector experienced a remarkable growth in the second quarter of 2024, with total ad spend reaching £10 billion, marking a 13.4% rise from previous levels. This unexpected surge is attributed in part to stronger than anticipated growth within digital formats, along with a rebound from the relatively weaker results seen in 2023. According to James McDonald, Director of Data, Intelligence & Forecasting at WARC, “Four in every five pounds spent on advertising so far this year has gone towards digital formats, money which has mostly been committed programmatically and increasingly leverages AI tools for further efficiencies.”
The Advertising Association/WARC Expenditure Report highlighted that for the first half of the year, ad expenditure had risen by 13.5% to £19.6 billion. With these robust figures, the forecast for 2024 has seen an upgrade, projecting ad expenditures to surpass the £40 billion mark, reflecting a 2.9% increase to £40.5 billion. This progression represents an annual growth of 10.6%, with real terms growth expected to be 7.9%.
The breakdown of ad spend reveals a strong inclination towards digital platforms, with online display advertising climbing by 21.6% and search by 12.7%. Out-of-home advertising, which includes billboards and other outdoor media, experienced a 17% rise. The Men’s Euros broadcast contributed to a 9% increase in television advertising, marking the strongest quarter for TV in more than two years.
Regional newsbrands and magazines, which lagged behind in growth following the pandemic, began to show signs of recovery with spending increases of 1.9% and 0.5% respectively. Stephen Woodford, CEO of the Advertising Association, noted the industry’s pivotal role in driving UK economic growth, stating that advertising is essential for competition, innovation, and job support. He also emphasised advertising’s role in funding culture, media, and sports, as evidenced by successful events like the Men’s Euros and the Olympics.
The UK’s advertising market is poised for unprecedented growth, with digital formats leading the charge in this revitalisation.
