UK online advertising spend continues to grow, rising 6.4% to £5.6 billion in Q2 2018, according to the latest Expenditure Report by WARC and the Advertising Association.
Mobile accounted for half of search spending. Display formats grew rapidly with online video attracting half a billion pounds during the second quarter.
The latest forecast includes revenues for magazine and news brands, as well as video-on-demand and radio websites.
Forecasts for the year were adjusted by 3.5 points to 13.3%. Meanwhile, an increase of 9.6% is predicted for 2019.
“Growth in online advertising spend continues to exceed our expectations, resulting in the fifth upgrade to our forecasts in as many quarters,” said James McDonald, data editor at Warc. “Barring any major shock to the system, this trend should continue to play out over the years ahead, lifting total market value in tow.”
TV market ad spend also exceeded expectations during Q2 2018, growing 1.9% to £1.2 billion, with the majority (89%) being attributed to spot advertising.
“Spend on advertising is showing real strength and resilience especially at a time of some uncertainty for UK business,” added Stephen Woodford, chief executive at the Advertising Association. “We know advertising has a positive effect on the economy, with £1 spent generating £6 for UK GDP, so it is encouraging to see the strongest Q2 and H1 results since 2014.”
But Woodford cautioned that the outlook for 2019 would depend on securing the ‘right’ Brexit deal.