Digital dominating British advertising: UK Expenditure report breakdown

According to data just published by the Advertising Association, mobile advertising is beginning to dominate UK advertising. Smartphones and tablets are expected to account for one quarter of search engine advertising this year, rising to a third next year. Of the £6.3bn spent each year on UK internet advertising, £1bn is claimed by mobile.

“The forecast explosion in mobile advertising and digital formats points to UK advertising at the centre of a global revolution in consumer information, service and choice,” said Advertising Association boss Tim Lefroy.

 The flow of money into mobile advertising, and other more recent formats such as on-demand television and newspaper websites pushed UK ad spend up nearly 4% to £17.9bn last year. The recovery is set to continue with a 5.5% increase this year and a 6.5% rise in 2015.

Broadcasters made £126m in 2013 from adverts placed in on-demand content. As Channel 4’s on demand service, 4OD, and the ITV Player gain viewers, spend in this area will be growing at more than 30% a year by 2015.

National newspaper websites took nearly £184m last year, an annual rise nudging 20%. They will grow a further 24% this year, and by a similar amount next year. Digital still accounts for a small proportion of the overall £1.5bn income from advertising for the national news business, but this is changing as leading British news sites gather worldwide followings.