The digital sector continues to boost UK advertising growth, with online ad spend growing 10.9% last year, according to new data.
The findings, from the Advertising Association/WARC Expenditure Report, indicates that overall ad expenditure grew by 6.9% in 2010 to reach £15.5bn. This represents the strongest ad spend growth since 2000.
The performance was partly due a higher than expected adspend increase in the fourth quarter of last year, which saw a 5.8% increase, with television (+12%) and direct mail (+12.7%) the strongest performing media.
Those positive figures have be seen in the light of predictions for this year that growth will dip to 2.9%, due to a relatively weak economy and falling consumer confidence.
The report predicted ad spend growth will slow to 2.9% in 2011 but rise to 5.5% growth the following year, boosted by spend around the Olympics.
Across 2010 as a whole, TV was the fastest-growing medium, with an overall increase of 15.8% – its strongest growth rate since 1986. This represents a major improvement on the previous year, which saw television adspend fall by 10.1%.
Out-of-home advertising also performed well in 2010, rising 12.5%. But the results for press advertising were mixed – national newspapers increased spend by 6% in 2010 but regional papers and magazines fared less well, dropping 6.4% and 5.9% respectively.
Tim Lefroy, the Advertising Association’s chief executive, said: “These are good news figures, not just for the advertising sector itself, but for UK business more widely. Rising ad spend reflects investment in sales by business, growth in media and content and, ultimately, signals a competitive, healthy UK economy ”
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