VOD starts to flex muscles in flourishing UK ad market
DetailsEditor | 30 July 2015
Just as the leading commercial broadcaster in the UK was posting above-market growth, research from the country's advertising trade association revealed the bullish state of the industry.
Indeed the benchmark research from the UK Advertising Association and Warc shows record first-quarter revenues prompting an upwards forecast for the UK ad marketplace as a whole. Q1 witnessed 8.2% Q1 2015 growth to result in total revenues in that period of £4.711 billion, the highest first quarter spend on record.
The survey also showed that growth in traditional display advertising — including television, radio and outdoor — was particularly strong, with display advertising overall rising 8.5% to reach £3.172 billion and TV spot advertising climbing 11.5% to reach £1.220 billion for the quarter. TV spot advertising reached its highest ever Q1 total, with spend increasing 11.5% to reach £1,220 million.
The Rugby World Cup is expected to boost Q3 ad-spend further, and the survey suggests that yearly TV spend will increase by 6.9% in 2015 from its 2014 total of £4.911 billion. Of this 2014 total, £4.463 billion is said to derive from and £145 million from broadcaster VOD which grew at a rate of 15.1% compared with the previous year.
Commenting on the survey, Tim Lefroy, chief executive at the Advertising Association, said: "Despite uncertainty in Europe and at home prior to the election, these figures come as a welcome boost. Ad-spend is growing faster here than anywhere in Europe, to the benefit of our digital economy, creative industries and UK plc."