VOD surge eclipses TV spot growth in recovering UK advertising market
Joseph O'Halloran | 28-04-2014
A shift to digital is set to push UK advertising to a record £20 billion in 2015, with video-on-demand (VOD) services riding a wave, according to the industry's trade association.
The latest Advertising Association/Warc Expenditure Report found that in 2013, ad-spend reached £17,877 million, up 3.9% on the previous year, with mobile advertising alone up by 95%. The report predicts that the UK ad market will benefit from a slowly recovering economy with ad growth of 5.5% in 2014 and 6.5% in 2015, taking UK ad spend past the £20 billion benchmark figure for the first time.
TV advertising will be at the heart of this recovery, with TV spot advertising growing 2.9% in 2013, to total £4.233 billion, and expected to benefit from increased ad spend around the football World Cup with a boost of 5.5% this year and 6% in 2015. Broadcaster video-on-demand (VOD) grew 21.2% year-on-year at the end of 2013 to £126 million, spurred by the continued popularity of catch-up TV channels. The report predicts VOD revenues to grow 27% and 31.3% respectively for 2014 and 2015.
"Another set of positive indicators to support the growth story – every pound spent on advertising returns six to GDP," said Tim Lefroy, chief executive at the Advertising Association. "The forecast explosion in mobile advertising and digital formats points to UK advertising at the centre of a global revolution in consumer information, service and choice."