The only way is up: UK advertising records strongest year in history
UK advertising had its strongest year in market history, with growth up 26.4 per cent, putting market value at an estimated £30bn for 2021.
The latest Advertising Association Expenditure Report released today revealed that adspend rose 23.2 per cent during the third quarter of 2021 to a record £7.3bn – three percentage points and £183m ahead of forecast.
All media recorded double-digit growth following the previous year’s decline, as the summer period saw the return of key sporting moments such as the Euros, Olympics and Paralympics along with the easing of restrictions.
Triple-digit growth was confirmed for cinema, up 655.9 per cent to £20.2m, marked by the September release of James Bond’s No Time to Die, while out-of-home saw an increase of 62.6 per cent to £270.4m.
Regional newsbrands saw online ad revenue overtake print for the second quarter running, as online revenue grew to £67.5m, up 55.7 per cent, with combined investment of £132.7m.
The latest report now estimates total investment for 2022 is set to rise by 8.5 per cent to £32.2bn – meaning the UK market will have expanded by more than a third since 2020.
In addition, these recovery projections are supported by international data from WARC which expects the UK’s bounce-back in 2021 to be the largest across any major international ad market – including the USA, France and China – while outstripping the global rate by more than 12 percentage points.
Stephen Woodford, chief exec, Advertising Association said: “UK advertising has seen a remarkable recovery from the coronavirus pandemic, racing ahead of key international markets with spend expected to cross the threshold of £30bn this year. A strong advertising market is a key indicator of the UK economy’s growth, with every £1 spent on advertising generating £6 GDP.
“The latest AA/WARC report brings welcome news not just for our industry but for the wider economy, as advertising investment is a key lever for businesses to capture new markets and drive their recovery.”
James McDonald, Director of Data, Intelligence & Forecasting, WARC said: “The latest verified data support our previous estimation that 2021 was the strongest year for the UK’s advertising market since monitoring began.
“Encouragingly this momentum appears to have sustained into the new year, with the impact of the Omicron variant on advertising trade appearing to be reasonably muted across the majority of sectors.”