Mobile advertising spending grows over 50% during the first half of 2016, report finds
The latest advertising expenditure report from Advertising Association and Warc finds that mobile now accounts for more than half of all online display ad spend in the UK. Overall, ad expenditure rose 5.2% for the first half of 2016. That’s equals to £9.9bn. Mobile ad spending grew 52.6% to £1.7bn during the same time.
Latest Advertising Expenditure Report Q 2016
Despite the report predicting continued growth of the digital advertising industry, it downgraded ad growth for 2017 to 3.3% awaiting the impact of the EU referendum to make a mark.
James McDonald, Senior Researcher, Warc, is optimistic:
“[It is] still not forecasting any kind of advertising recession. […] We stand by that statement for the time being. While we’ve heard others speak of potential weaknesses in the third and fourth quarter of this year, we work based on data and not anecdotal evidence. Mobile is seeing high investment, and because it’s such a large part of the UK total it should be enough to carry it through. There is a lot of resilience, innovation and new formats. There’s a lot of growth yet to be realised, so it’s not all doom and gloom.”
The increase in ad expenditure during the first half of the year was largely driven by digital and mobile channels with online video ad spend now up by 66.4% to £252m. Native ad spend increased 29.9% to £451m whilst TV expenditure rose just 2.1%.
With mobile now accounting for half of all online ad spend, Tim Lefroy, Chief Executive of the Advertising Association warns that the government should steer clear of unclear regulation. This could adversely affect the advertising industry and its impact on the economy.