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UK Adspend Growth Slowest in Four Years

Trend Summary: UK advertising expenditure grows at its slowest rate in four years.


According to the Advertising Association/WARC Expenditure Report published today, UK advertising spend recorded its ...

... slowest growth rate since Q2 2013.

Although the overall market expanded, traditional media had a difficult start to the year, with cinema the only non-digital medium to grow during the quarter.

More significantly, total TV advertising spend dipped 6.2% in Q1 2017, the most severe fall since 2009. Radio (-0.1%), out of home (-0.6%), direct mail (-1.5%) and newsbrands (-11.2%) also recorded a decline in spend during the quarter.

According to James McDonald, Senior Data Analyst at WARC: “The latest data show that large retailers – particularly supermarkets – and major food brands reined in their TV spending by 25% during the first three months of 2017, instead committing to cutting prices on the shelves as household expenditure wanes.” 

Total TV ad expenditure is forecast to fall 1.9% this year, a 1.4 percentage point downgrade since the last AA/WARC forecast in April. However, losses are expected to be regained in 2018, with ad revenues growing 2.5%, partially due to the men’s FIFA World Cup.

Read the original unabridged Warc.com article.

[Estimated timeframe:Q3 2017]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

... slowest growth rate since Q2 2013.

Although the overall market expanded, traditional media had a difficult start to the year, with cinema the only non-digital medium to grow during the quarter.

More significantly, total TV advertising spend dipped 6.2% in Q1 2017, the most severe fall since 2009. Radio (-0.1%), out of home (-0.6%), direct mail (-1.5%) and newsbrands (-11.2%) also recorded a decline in spend during the quarter.

According to James McDonald, Senior Data Analyst at WARC: “The latest data show that large retailers – particularly supermarkets – and major food brands reined in their TV spending by 25% during the first three months of 2017, instead committing to cutting prices on the shelves as household expenditure wanes.” 

Total TV ad expenditure is forecast to fall 1.9% this year, a 1.4 percentage point downgrade since the last AA/WARC forecast in April. However, losses are expected to be regained in 2018, with ad revenues growing 2.5%, partially due to the men’s FIFA World Cup.

Read the original unabridged Warc.com article.

[Estimated timeframe:Q3 2017]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: Warc.com
MTT insight URL: http://www.marketingtrendtracker.com/article.aspx?id=7237