UK TV advertising revs reach record high in 2013
Joseph O'Halloran | 07-03-2014
Despite economic recovery being far from complete across the nation, total UK TV advertising revenue increased year-on-year by 3.5% at end of 2013 to reach a new record high of £4.63 billion.
This revenue figure, says a report from the marketing body for commercial TV, Thinkbox, includes all the money invested by advertisers such as linear spot and sponsorship, broadcaster video-on-demand (VOD) and product placement.
2013 was the fourth consecutive year that TV ad revenue had grown in the UK, with the year also seeing over 700 new or returning advertisers on TV. Together, new or returning advertisers accounted for 2% of total TV ad revenues, according to Nielsen data.
Commercial impacts (the number of TV ads watched at normal speed) during 2013 were up 1.6% on 2012, and have grown by 10.4% over the last five years. The average viewer watched 47 ads a day – this is four ads more a day than five years ago. Collectively the UK watched an average of 2.8 billion ads a day in the first half of the year.
What made the figures more impressive was the fact that TV advertising prices in 2013 were the cheapest in real terms on record, some 38.5% cheaper than 20 years ago. In addition the year did not see a major sporting event, a traditional source of added revenue. Thinkbox noted that TV advertising investment is forecast to grow again in 2014, boosted by the World Cup in Brazil, noting Advertising Association/Warc predictions that it would be up 6% annually by the end of the year.
Commenting on its survey, Lindsey Clay, Thinkbox’s chief executive, said: “Businesses know that TV works. The strength of TV ad investment reflects commercial TV’s health and also acknowledges the mountain of evidence proving TV’s unrivalled ability to create business profit.”