In the second quarter of 2024, the UK advertising market experienced a remarkable growth, with spending hitting £10 billion.
- Digital platforms were the primary drivers of this growth, accounting for a substantial 80% of the total ad spend.
- The Advertising Association/WARC Expenditure Report highlighted a 13.5% increase in ad expenditure for the first half of the year.
- UK ad spend is projected to exceed £40 billion for the first time in 2024, marking a significant upward revision.
- Online display and search ads showed notable increases, with sectors like TV and regional newsbrands also seeing gains.
In an impressive turn of events for the UK advertising sector, the second quarter of 2024 saw ad spending reach a substantial £10 billion, reflecting a 13.4% increase from the previous year. This surge surpassed industry forecasts, largely propelled by the robust expansion of digital advertising formats, which accounted for a significant portion of the total spend.
James McDonald, Director of Data, Intelligence & Forecasting at WARC, noted the industry’s remarkable performance. “Four in every five pounds spent on advertising so far this year has gone towards digital formats, money which has mostly been committed programmatically and which is increasingly leveraging AI tools for further efficiencies,” he explained. This shift towards digital represents a critical component in the overall growth trajectory of the UK’s advertising market.
The Advertising Association/WARC Expenditure Report further underscored this trend, indicating a 13.5% rise in ad expenditure to £19.6 billion for the first half of the year. The report has subsequently adjusted its forecast, anticipating the 2024 UK ad spend to surpass the £40 billion mark for the first time, a 2.9% increase from previous estimates.
Breaking down the figures, online display advertising saw a remarkable 21.6% growth, while search advertising was up by 12.7%. The out-of-home advertising format also experienced a significant 17.0% rise. Television advertising benefited from high viewership events, such as the Men’s Euros, which contributed to a 9.0% increase for the quarter, representing the best performance for TV in over two years.
Meanwhile, regional newsbrands and magazines, which had struggled since the 2022 post-pandemic recovery, reported their first signs of growth with spending increases of 1.9% and 0.5% respectively. Stephen Woodford, CEO of the Advertising Association, highlighted the industry’s contribution to the UK economy, stating, “The advertising industry is once again driving UK growth, helping businesses to compete, promote innovation and support jobs.”
The resilience and growth of the UK advertising sector in 2024 underscore its critical role in supporting a vibrant economic landscape.
