The majority of mobile display advertising expenditure is now going towards social media, according to the Advertising Association and Warc’s latest Expenditure Report.
Overall, the advertising market in the UK achieved a new milestone during Q3 2017. Mobile advertising grew 30.7% to £1.3 billion year-on-year with one in four pounds being spent on mobile ads.
Total advertising market growth was 3.5% the year over. A whopping £5.4 billion were spent during the third quarter.
The report also noted that spending on mobile was higher than TV for the first time. However, TV continues to be the leading display channel.
“The latest data indicate that total mobile ad investment during the quarter was higher than that for TV for the first time – though the two channels serve different roles for advertisers,” explained James McDonald, data editor at Warc. “While TV remains the largest display medium by some distance, mobile investment is being driven by advertisers looking to reach consumers via search results and social feeds.”
Social media ad spend grew 44.7% year-on-year. Together with paid search, mobile advertising spending is now ranking above £5 billion, according to Warc’s early predictions.
The report noted that the latest data have led to upgraded full-year estimates with total advertising market growth at 3.4%, which is 0.3 percentage points above the last projections from October 2017.
Ad spend is expected to grow 2.8% in 2018.
Stephen Woodford, CEO of the Advertising Association, said:
“UK advertising spend enjoyed a record high in the third quarter of 2017, with figures up again year-on-year. It is encouraging to see further predicted growth of 2.8% for 2018. UK advertising is vital for the economy, generating £6 for every £1 spent”.
In addition, Woodford noted the importance of decision-making during Brexit. He added:
“As we work through Brexit, we need to help Government make the best decisions to support our industry and, by extension, the wider UK economy as we target growth across the nations and regions and in an increasingly global marketplace.”