Mobile advertising now accounts for 99% of all online advertising growth

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Mobile advertising is on a roll. Ad spend of the format in the UK grew 45.4% to £3.9 billion in 2016, accounting for 99% of online advertising growth. According to the latest Advertising Association/WARC Expenditure Report86% of mobile advertising’s current market value has been created over just the last five years.

Digital ad formats are among the key drivers for growth in 2016. Internet advertising spend was up 13.4% to £10.3bn. Digital accounted for a total of 38% of £1.1bn in out-of-home advertising. That’s twice as high as in 2012.

TV ad spend jumped 12.6% for video-on-demand formats, and reached a total of £5.3bn in 2016. Over the last decade, TV expenditure has been fairly steady at around 25% of overall spend.

Stephen Woodford, Chief Executive at the Advertising Association, explains:

“Advertising has proved resilient to uncertainty and behind these numbers is a cutting edge, digital business in which Britain is a world-beater. As we work towards Brexit, we’re urging Government to support UK advertising and do more to unlock its potential to grow UK plc.”

Overall ad expenditure in the UK increased 3.7% to £21.4bn during the last year. This marks the seventh year in a row for growth in the market and forecasts are indicating a further boost to the market. In 2017, UK advertising expenditure is expected to grow 2.5% and 3.3% in 2018. Mobile ad spend is set to increase around 30% this year and 21% in 2018.

James McDonald, Senior Data Analyst at WARC commented:

“The UK’s ad industry is experiencing the most seismic shift since WARC began monitoring in 1982. Last year exemplified this, as over 95% of the new money entering the market came from digital formats. The trend will continue as ad tech improves and consumers spend more time with their internet-connected devices.”