AA/WARC: Digital spend drives market growth in Q2 2023
Posted on Tuesday 31 October 2023 | IAB UK
The latest Advertising Association / WARC Expenditure Report shows that the UK ad market was up 1% in Q2 2023 to a total of almost £9 billion
The figures released by the Advertising Association/WARC for the second quarter of 2023 confirm that the UK’s advertising market spend was marginally up (+1.0%) , reaching a total of almost £9bn. The findings show key online formats, including search (+5.3%) and online display (+5.8%) registered growth between April and June, alongside BVOD (+5.6%) and out-of-home (+4.4%), which continued its recovery from the pandemic downturn. You can find out more here.
Speaking about the latest data, Stephen Woodford, Chief Executive of the Advertising Association, said: “Advertising continues to show itself as a weathervane for the UK economy, with the advertising market expected to grow slightly more than the economy, with both barely in positive figures. Looking ahead to 2024, we expect to see more channels experience growth again, as the ad market grows to £37bn for the year."
The latest AA/WARC report follows IAB UK’s Digital Adspend report H1 2023, which showed that investment in digital advertising remained resilient, with total growth of 5% year-on-year, primarily fuelled by video spend. Find out more about Digital Adspend here.
AA / WARC Expenditure Report data
|
Media |
Q2 2023 year-on-year % change |
H1 2023 year-on-year % change |
FY 2023 forecast year-on-year % change |
Percentage point (pp) change in forecast vs July |
2024 forecast year-on-year % change |
|
Search |
5.3% |
5.1% |
5.6% |
-0.5pp |
5.2% |
|
Online display* |
5.8% |
6.4% |
7.4% |
+2.2pp |
6.6% |
|
TV |
-12.8% |
-11.5% |
-5.8% |
-4.4pp |
0.4% |
|
of which VOD |
5.6% |
10.2% |
16.1% |
-1.2pp |
12.4% |
|
Online classified* |
-11.6% |
-13.0% |
-11.1% |
+3.1pp |
-3.6% |
|
Direct mail |
-15.0% |
-15.8% |
-12.8% |
-2.0pp |
-5.0% |
|
Out of home |
4.4% |
4.7% |
7.7% |
+2.0pp |
5.0% |
|
of which digital |
5.6% |
6.1% |
9.3% |
+1.8pp |
6.7% |
|
National newsbrands |
-9.9% |
-8.2% |
-5.7% |
+0.2pp |
-2.6% |
|
of which online |
-11.4% |
-7.9% |
-4.4% |
-3.0pp |
1.5% |
|
Radio |
-6.2% |
-5.9% |
-3.4% |
-2.0pp |
1.5% |
|
of which online |
-6.6% |
0.6% |
1.3% |
-10.5pp |
4.4% |
|
Regional newsbrands |
-14.0% |
-14.0% |
-10.1% |
+0.4pp |
-2.4% |
|
of which online |
-11.1% |
-10.7% |
-7.0% |
= |
1.7% |
|
Magazine brands |
-7.4% |
-7.3% |
-5.3% |
+1.8pp |
-1.3% |
|
of which online |
-10.1% |
-10.5% |
-5.8% |
+1.2pp |
2.4% |
|
Cinema |
-7.0% |
-7.1% |
7.6% |
-13.2pp |
3.5% |
|
TOTAL AD SPEND |
1.0% |
1.0% |
2.6% |
= |
3.9% |
|
Note: Broadcaster VOD, digital revenues for newsbrands, magazine brands, and radio station websites are also included within online display and classified totals, so care should be taken to avoid double counting. Online radio includes targeted in-stream radio/audio advertising sold by UK commercial radio companies, together with online S&P inventory. |
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Written by
IAB UK
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