"The fastest ad spend recoveries were naturally attributed to the hardest-hit sectors of out-of-home (OOH) and cinema, with the former at 46.4% and the latter at 2,208.2% (cinemas shut during the pandemic, remember). TV was alone in seeing a decrease in ad revenue in the last quarter (-0.6%). It's worth noting that spending in TV is diversifying across new channels (that broadcasters often still own) such as broadcast video-on-demand (BVOD) (+9.3%)."
"Every six months, a report from AA/Warc collects ad revenue data directly from media owners across numerous channels. Pressures from inflation, squeezed margins and the cost of living crisis have increased the price of advertising these last few months, so the fact that ad spend is up does not mean that marketers are buying more ads. With that caveated... There's a mere 3.9% media owner ad revenue growth expected for 2023 across the whole UK industry, a total of £36.2bn."
The UK advertising market grew 9.2% in 2022 to £34.9bn but growth forecasts have been downgraded since July 2022. Inflation, squeezed margins and the cost-of-living crisis have raised advertising prices, so higher ad spend does not necessarily reflect higher volumes of ads bought. Media owner ad revenue is forecast to rise just 3.9% in 2023 to £36.2bn. Online advertising share will increase from 74.0% in 2022 to 75.2% in 2023. Out-of-home and cinema saw the fastest recoveries, TV ad revenue fell 0.6% last quarter while BVOD and VOD are growing. A bumper Q4 is expected due to the World Cup moving to winter, concentrating TV spend into the festive window.
Read at The Drum
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