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| Author | Zoe Aresti |
Advertising expenditure in the cinema industry grew by 14% in the second quarter of 2017, contributing to a general growth of 3.7% in UK adspend in the first six months of the year, reaching £10.8 billion.
This represents the largest H1 total of any year since the beginning of monitoring in 1982. Further to this, cinema adspend grew by 21% in the first half of 2017 in comparison to H1 2016.
The figures were announced in the Advertising Association/WARC Expenditure Report, published on the 31 October. This has caused an upgrade to the forecast for 2017 to 3.1% growth, indicating an annual spend of £22 billion. The forecast for cinema adspend in 2017 is 12.6%, which is an increase from the growth of 8.4% from 2015 to 2016. Cinema is forecasted to grow by 4% in 2018.
Digital, which encompasses internet and digital out of home, accounted for 54% of all advertising spend in the first half of 2017. The main contributor to a 13% rise in internet spend during the first quarter was a mobile growth of 36.1%, with TV video-on-demand reporting a growth of +10.6% and regional newsbrands reporting a growth of +10.4%. This first half growth was boosted by a year-on-year rise of 4% in Q2, which is the 16th consecutive quarter of market growth and the strongest rate recorded since Q4 of 2015.
The Chief Executive at the Advertising Association, Stephen Woodford, said of the report “Spend on advertising is showing strong resilience, at a time of real uncertainty for UK business. We know advertising has a positive effect on the economy, with every pound spent generating six pounds of GDP, so it is good to see steady, sustained growth. The upgrade of our 2017 forecast by a further one percent, the equivalent of an additional investment of £190M, should be seen as a cautious indicator for continued growth in the UK economy.”