UK Mobile Ad Spend Worth £429m in H1 2013

UK mobile advertising spend grew by 127 per cent year-on-year to reach £429.2m in the first half of 2013, compared to £188.1m in the first half of 2012, and not too far short of the total figure for 2012 of £526m.

The numbers mean that mobile now accounts for 14.1 per cent of all digital advertising spend, which was worth £3.04bn in the first half of 2913, 17.5 per cent up on the first half of 2012. In H1 2012, mobile accounted for 7.2 per cent of total digital ad spend in the UK. As 4G networks begin to roll out, mobile video advertising also grew sharply, up 1,260 per cent from £1.7m in the first half of 2012 to £23m in the first half of 2013. 

The figures come from the the latest Internet Advertising Bureau UK (IAB) Digital Adspend report, conducted by PwC, with UKOM-approved comScore consumer data. The report also reveals that British consumers average 43 hours a month online –  one in every 12 waking minutes. 22 per cent of all UK internet time across computers, tablets and mobile phones is now spent enjoying entertainment online. Social networks and blogging now account for 12 per cent of internet time or one in every seven minutes. Together, these activities account for over one third of Britons’ time online. According to UKOM/comScore, over 46.1m people in the UK are active online. 

“Nothing illustrates the internet as an entertainment platform better than the fact that over one in five minutes online is accounted for by entertainment, and that advertisers spent almost 1,300 per cent more on mobile video than a year ago,” saidTim Elkington, director of research & strategy at the IAB. “With smartphone penetration crossing the two-thirds landmark and the successful roll out of 4G, 2013 could be the year when advertising spend on mobile crosses the £1bn threshold.” 

Total mobile display advertising (including video) increased by 195 per cent year-on-year to £150.5m in the first half of 2013. Thus, mobile now accounts for 20.4 per cent of total digital display advertising. For the first time, consumer goods became the biggest spender on mobile display, almost doubling its share in a year – from 14.5 per cent in H1 2012, to 26.8 per cent in H1 2013. It overtook the long-time number one category, entertainment & media, whose share stayed at 22.9 per cent. 

Driven by mobile display and video, the consumer goods sector extended its dominance over the finance sector as the biggest spender on digital display advertising, overall – accounting for 18.2 per cent in H1 2013 compared to 15.8 per cent a year earlier. Finance’s share dropped from 15.8 per cent to 13.7 per cent.

Display advertising across the internet and mobile, boosted by video and social media, grew above the overall (17.5 per cent) digital rate at 23 per cent on a like-for-like basis to £737.9m, representing a 24 per cent share of digital ad spend in the first half of 2013. 

Video advertising grew by 86 per cent year-on-year to £135.2m. In the last three years, video ad spend has increased almost six-fold, while in the last year, video’s share of online and mobile display has grown from 12 per cent in H1 2012, to 18 per cent in H1 2013. Social media advertising grew 53 per cent to £242.5m. In the last three years, social media spend has increased almost three-fold. 

Paid search marketing increased 18.9 per cent year-on-year to reach £1.81bn, a 59 per cent share of digital ad spend. Within these figures, mobile search grew by 101 per cent to £271m, accounting for 63 per cent of mobile ad spend. Classifieds, including recruitment, property and automotive listings, grew 6.6 per cent year-on-year  to £452.7m, or 15 per cent of digital ad spend. Among media owners who submitted revenue figures to the IAB and PwC, designated ad spend on tablets is estimated to be at least £10.5m in the first half of 2013; up from at least £2.4m in the first half of 2012.