Ad spend growth continues thanks to streaming and cinema boom
Advertising spend hit £6bn in the second quarter as booming demand for films and TV shows helped drive sharp growth in the video on-demand and cinema sectors.
UK ad spend grew 5.8 per cent year on year in the three months to the end of July, although the £6bn figure remained flat on the first quarter.
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The latest figures, which mark the 24th consecutive quarter of growth, revealed a surge in advertising for broadcaster video on-demand and cinema, as brands cash in on insatiable consumer demand for the latest films and TV shows.
Video on-demand posted a 20 per cent increase in ad spend over the quarter, while cinema surged just under 50 per cent thanks to a string of new advertisers.
Karen Stacey, chief executive of Digital Cinema Media, said cinema offered advertisers a brand safe and trusted environment, as well as a captive audience.
“Despite the ever-growing proliferation of content choices across media platforms, people continue to flock to the cinema, with the medium consistently delivering strong audiences,” she said. “We are also seeing more bespoke for cinema content being created, with advertisers pushing the boundaries of the big screen experience.”
Online radio and digital out-of-home advertising also continued their recent runs of good form, posting double-digit growth.
Overall, ad spend increased more than five per cent to £12bn in the first six months of the year, according to industry bodies the Advertising Association (AA) and Warc.
AA chief executive Stephen Woodford said the figures, which cover the period immediately after the original 31 March deadline, showed the “continued strength” of UK advertising amid political uncertainty.
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“Advertising’s dynamism is shown by the growth recorded across many different formats, with particularly impressive performances from cinema, TV video on-demand and online radio,” he said.
However, Woodford said he was “acutely conscious” of the industry’s desire for greater clarity amid a further delay to the Brexit deadline.
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