Standard Media Index - Standard Media Index has the only accurate, actionable ad spend data fresh from the invoicing source, so you can tackle high stakes decisions with confidence.

back to blog

One step back, two steps forward for U.K ad spend

May 28 th 2015

After an outstanding first quarter that saw U.K ad spend grow by 7.3%, the absence of marketing dollars flowing around last year’s Football World Cup has manifested itself in a soft market this April.

Ad spend throughout the final weeks of the U.K general electoral campaign was unable to beat the pull felt by brands to invest in the world’s most-followed sporting event and the market dropped by 8.1% for the month. However, against the backdrop of a gloomy month, the overall ad market has actually risen more than 3.4% in the calendar year-to-date.

The market’s growth so far this year can be attributed to the tremendous health of two of major media sectors. Digital has grown a healthy 9.8% CYTD, followed closely by television (8.2%) in a symbol of their ability to co-exist and thrive.

The TV and digital results indicate that while brands are increasingly looking to the digital media ecosystem to deliver granular and targeted campaigns, they are also showing that they still trust in the power of television to provide mass reach.

That both TV and digital are growing at a steady pace, of course, comes at the expense of other media – and print is paying the highest price. The newspaper and magazine ad business have both shed revenue in the year to April, dropping 19.1% and 17.2% respectively.

In other sectors, out-of-home advertising has remained relatively flat (1%) and radio advertisers have also reined in their spending by 2.7%. While each market failed to grow, the results show that brands haven’t given up on out-of-home and radio’s ability to build loyalty among their respective market niches.

Looking ahead, the declines in April are expected to continue into this quarter, although, the U.K can look towards a healthier second half of the year when ad budgets around another major sporting event will fuel the market. The lure of the 2015 Rugby World Cup, hosted on home turf in England and Wales, will no doubt be attractive to domestic advertisers in September who want to attach themselves to the major international event.

The World Cup, coupled with improved economic conditions, solid employment rates and weightier consumer pockets, will hopefully bolster the market for the final quarter of the year when brands also look to maximize the Christmas season.

We’ll be watching closely to see the knock-on effect of those much-anticipated market conditions, which will hopefully boost annual ad spend to healthy single-digit growth to close out the year.

SMI Team

More Posts

SMI Update: January Ad Spend Emerges as Stable as SMI Moves to Fortnightly Publishing of ALL Media and Category Ad Spend Data

AUSTRALIA’S media Agency market has kicked off 2018 in stable fashion with the updated January media ad spend data from Standard Media Index (SMI) showing the total back just 0.3% from last year’s record January result at $461.5 million. And this data release – which compares to the 8.2% decline reported before two weeks ago before late Digital […]

March 8th 2018

Data to Drive Sales Strategies: New Product Category Ad Spend Data in Australia and New Zealand

When we started SMI in 2009 the goal was to provide structure and clarity to an industry that was historically opaque. And we’ve been lucky to forge relationships with others in the industry, not just in Australia and New Zealand, but across the world, that want to help us provide that transparency. But as the […]

November 8th 2017

Introducing Predictive Ad Earnings Forecasts for FB and GOOGL

Today, we’re extremely excited to share our new Ad Earnings Model with everyone. In short, it’s a new, predictive data point that helps investors understand the fundamental performance of key media companies, such as Google and Facebook, to assess near and long-term potential upside. It works by taking the real ad spend in our Core […]

October 25th 2017