Yahoo Finance Social media drives UK online ad spend to highest level ever
Promotions online and on social media made up three-quarters of total advertising spend in the UK last year, the highest level on record, new data has revealed.
Online formats combined hit a total of £28.7bn in 2023, equivalent to over 78 per cent of all UK ad spend in 2023, according to the latest ad spend figures from the Advertising Association and the World Advertising Research Centre (WARC).
Total ad spend across all media rose six per cent in 2023 to £36.6bn, although this translated to a 1.2 per cent contraction after accounting for inflation.
James McDonald, director of data, intelligence and forecasting at WARC said: “Our latest survey of media owners confirms 2023 as a challenging year for most, with few properties recording gains and spend instead further consolidating within search and online display formats – particularly social media.
“Combined, these digital staples are on course to account for almost four in five pounds spent on advertising in the UK next year, up from a share of 51% just five years ago,” he added.
The data also showed the UK outpaced major European markets in 2023, as the advertising market in Germany declined, while France and Ireland grew more slowly than the UK.
Stephen Woodford, chief executive at Advertising Association said: “The UK advertising industry is much respected around the world, which is why we continue to see the exports of UK advertising services grow, an important source of additional revenue for many advertising businesses in a domestic economy that has little-to-no growth.”
Projections indicate that total UK ad spend will reach £38.8bn in 2024, before hitting the £40bn mark in 2025.
This year, stronger economic conditions are expected to drive increased investment in ‘brand-building’ campaigns. And big events such as the Men’s Euros in June, the upcoming general election in the second half of the year and the Paris Olympics in July are also predicted to boost advertiser spend.
“Our forecasts assume that the UK’s economy will begin to break from the pattern of stagnation that has come to define recent quarters,” said McDonald.
“Easing inflation over the coming 18 months should encourage more favourable trading conditions within the advertising sector, facilitating growth across a broader range of channels in turn,” he added.
