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BizReport : Advertising archives : May 02, 2016

Mobile drives fastest UK digital ad growth rate in 7 years

The Advertising Association/Warc Expenditure Report is out and it reveals, perhaps unsurprisingly, that Internet ad spend growth was mainly driven by mobile.

by Helen Leggatt

Ad spend in the UK grew at the fastest rate in seven years in 2015, up 7.5% to £20.1 billion (US$29.3 billion), according to the latest Advertising Association/Warc report. The strong growth in total UK adspend is expected to continue with a rise of 5.5% forecast in both 2016 and 2017.

"The UK is the fastest-growing major advertising market in Europe, and its most successful exporter. It's a tribute to our creativity and technical innovation," said Tim Lefroy, Chief Executive at the Advertising Association.

Internet ad spending increased 17.3% to reach £8.6 billion (US$12.5 billion) with mobile accounting for 78% of that growth (up 61% to $£2.6 billion / US$3.8 billion).

According to the report, 2016 total Internet advertising will rise by 11.5%, while mobile ad spend is expected to climb by 36.8%.

"The increasing array of devices people use to go online has helped digital ad spend hit another gear as advertisers look to reach them and time spent online increases," says Tim Elkington, Chief Strategy Officer at the UK's Internet Advertising Bureau. "Smartphones are the major driving force behind this, as people increasingly use them for activities they used to do on desktop, from searching and shopping to social and watching video."

Other data from the report include:

- Ad spend on social media sites grew 45% to £1.25 billion (US$1.8 billion);
- More than 71% of social media spend goes on mobile;
- Video ad spend grew 50.7% to £711 million (US$1 billion);
- Video spend on mobile rose 98%;
- Native ad and content spend increased by 49.9% to $776 billion (US$1.1 billion);
- Royal Mail data showed direct mail spend grew 1.4% to £1.9 billion (US$2.7 billion).

Tags: ad spending, advertising, digital, expenditure, mobile, UK

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