Ad spend in the UK broke the £17bn barrier for the first time since 2007, prior to the recession, new research has shown.
According to new figures from the Advertising Association and Warc, expenditure hit £17.172bn in 2012 – a 2.3% increase from the previous year’s figures.
The AA/Warc Advertising Expenditure Report, which measures both total market and individual media breakdowns, showed that internet spend (which included spend for online TV, news brands and magazine brands, as well as revenues for online, mobile and tablet) recorded the highest figure at £5,416, followed by TV with £4,480.
Tim Elkington, director of research and strategy at the Internet Advertising Bureau (IAB), said: “The increase in granularity shows just how vital digital is to the wider market. Digital is making a really positive contribution to the advertising economy - whether you consider the internet advertising total or the contribution that it makes to individual media.”
Looking forward, AA/Warc forecasted that ad spend will continue to grow over the next eight quarters to reach a 2.7% growth rate in 2013 with the figure rising to 5% next year.
Elsewhere, out of home advertising enjoyed a strong performance in 2012 as a direct result of an Olympic boost in Q3 whilst national news brands saw a decline of -6% in 2012.
Recent figures from the (IAB) showed that the proliferation of smartphones has skyrocketed mobile advertising spend to reach £526m in 2012 – helping smash the £5bn overall digital ad spend barrier for the first time.