2021 was the strongest year on record for UK ad market, report
The UK advertising market’s recovery has exceeded expectations in the latest Advertising Association/WARC Expenditure Report, with estimates for growth in 2021 at 26.4%, reaching a total of £29.7bn.
The new findings see an increase in October’s projection for 2021 (+24.8%) making this the strongest year in UK ad market history. This is supported by data released for Q3 2021, showing ad spend of £7.3bn – the largest-ever summer spend on record. New forecasts show total investment for 2022 is set to rise by 8.5% to £32.2bn.
AA/WARC figures confirm ad spend rose 23.2% during Q3 2021 to a record £7.3bn, £183m ahead of forecast. All media recorded double-digit growth in Q3 2021 following the previous year’s decline, as the summer period saw the return of key sporting moments such as the Euros, Olympics and Paralympics along with the easing of Covid-19 restrictions.
UK ad spend is expected to soar to £32.2bn this year, with current projections at 8.5% growth, meaning the 2022 market will have grown by more than a third since 2020. Continued growth is also expected from the largest advertising channels, including search (+11.1%) and online display (+8.3%) as the effects of the pandemic on consumer habits continue to be felt. Overall ad spend is now forecast to grow 12.6% year-on-year, compared with 10.5% previously.
Stephen Woodford, Chief Executive, Advertising Association: “UK advertising has seen a remarkable recovery from the coronavirus pandemic, racing ahead of key international markets with spend expected to cross the threshold of £30bn this year. A strong advertising market is a key indicator of the UK economy’s growth, with every £1 spent on advertising generating £6 GDP. The latest AA/WARC report brings welcome news not just for our industry but for the wider economy, as advertising investment is a key lever for businesses to capture new markets and drive their recovery.
It is all the more important therefore that the Government recognises the need to support industry-led skills training to complement the demand for digital skills required to keep this market booming.”
