Mobile Drives Strong Online Ad Revenue Growth

David Murphy

Telegraph Mobile Ad August 2016UK ad spend rose 4.3 per cent year-on-year in Q1 2016 to reach £5,007m – the first time ad spend has passed £5bn in a first quarter. In the calendar year 2015, total UK ad spend grew by 7.3 per cent year-on-year to reach £20.07bn. It is forecast to grow by a further 4.2 per cent in 2016 to reach £20.9bn. And by another 3.8 per cent in 2017, when it will be worth £21.7bn.

The figures come from the latest Advertising Association/Warc Expenditure Report data and also reveal strong growth for mobile. Internet ad spend grew by 15.3 per cent in Q1 to reach £2.3bn, the 11th consecutive period of quarterly growth. Mobile is believed to have accounted for some 96 per cent of total internet growth, as mobile ad spend rose 55.9 per cent year-on-year to an estimated £830m during Q1 2016.

Total internet ad spend for 2015 was £8.6bn, a 17.3 per cent year-on-year increase. Of this, mobile accounted for £2.6bn, a 61.1 per cent increase on 2014’s total. In 2016, internet ad spend is forecast to rise by 12.3 per cent to £9.7bn, while mobile is forecast to post a 39.3 per cent increase for a total of £3.7bn.

“These numbers suggest that, despite uncertainty, our sector is resilient,” said Tim Lefroy, chief executive at the Advertising Association. “Government can underpin that by taking every step possible to build advertiser confidence, promote the UK as a global advertising hub and ensure we remain open to the world’s best advertising talent.”

The Advertising Association/Warc Expenditure Report is based on advertising expenditure figures gathered from across the entire media landscape, rather than relying solely on estimated or modelled data.