AA/WARC: Total UK ad spend up 8.8% in 2022 to £34.8bn

Posted on Thursday 27 April 2023 | IAB UK

The latest Advertising Association / WARC Expenditure Report shows that, after a strong start, H2 2022 was challenging for the UK’s ad market


Actual figures released by the Advertising Association/WARC for the full year in 2022 confirm that spend was up by 8.8%, with the total figure standing at £34.8bn, but the momentum from a strong start to the year was seen to wane in latter months. Total UK ad spend growth in the first half of 2022 has been upwardly revised to 26.0%, while the total ad market contracted by 5.7% in the second half of the year. 

2023 projections have been downgraded from the previous forecast (published in January 2023) to +0.5% - compared to +3.8% in January - due to signs that the downturn recorded in the latter half of 2022 has continued into the first half of 2023. Forecasts for the coming year show reduced growth expectations for nearly all sectors of advertising with the economic headwinds of high inflation, muted growth and talent shortages being felt across the industry. Spend is expected to reach £35.0bn in 2023, before a 3.9% rise in 2024 to £36.3bn. See the table below for channel specific forecasts. 

Commenting on the latest data, Stephen Woodford, Chief Executive of the Advertising Association, said: “These figures reflect the broader macro-economic environment, with a cautious outlook as the UK economy narrowly avoids recession, but shows very little signs of real growth. Advertising investment is an important barometer of business performance and confidence in the economic outlook. It drives competition and innovation, supporting job creation and livelihoods, returning a ration of £1 invested generating £6 of GDP."

The latest AA/WARC report follows IAB UK’s Digital Adspend report 2022, which showed the digital ad market outpaced predictions last year to grow 11%, reaching £26.1bn. Find out more about Digital Adspend here.

 

AA / WARC Expenditure Report data 

Media

2021
£m

2022
£m

2022
year-on-year

% change

2023 forecast year-on-year

% change

2024 forecast year-on-year

% change

Search

11,658.6

13,143.8

12.7%

1.7%

5.2%

Online display*

10,790.1

11,867.8

10.0%

1.7%

5.3%

TV

5,458.0

5,381.0

-1.4%

-2.0%

1.6%

of which BVOD

732.8

845.3

15.4%

2.5%

3.6%

Online classified*

1,053.4

1,110.8

5.4%

-7.5%

-2.7%

Direct mail

1,082.0

1,095.0

1.2%

-6.0%

-4.0%

Out of home

901.3

1,181.2

31.1%

4.9%

5.9%

          of which digital

576.8

749.9

30.0%

6.0%

7.1%

National newsbrands

844.9

826.3

-2.2%

-5.2%

-3.0%

of which online

367.4

375.6

2.2%

1.0%

2.3%

Radio

720.1

740.1

2.8%

-1.6%

0.8%

          of which online

72.7

77.7

6.9%

2.7%

4.1%

Regional newsbrands

510.5

505.2

-1.0%

-5.8%

-4.9%

of which online

250.9

259.2

3.3%

-0.8%

0.7%

Magazine brands

556.4

552.1

-0.8%

-3.2%

-2.6%

of which online

297.7

302.2

1.5%

0.9%

1.6%

Cinema

102.8

229.3

123.0%

37.2%

13.0%

TOTAL UK ADSPEND

31,956.5

34,772.1

8.8%

0.5%

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.
Source: AA/WARC Expenditure Report, April 2023

 

Written by

IAB UK

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