Internet growth fuels record £10.8bn UK ad spend in first six months of 2017 - but news brands and magazines lose out

UK advertising spending grew to a record £10.8bn in the first six months of this year – but news brands and magazines saw their ad revenue decline, according to Advertising Association data.

Overall UK advertising revenue grew 3.7 per cent in the first six months of this year.

Internet advertising accounted for around half the total and grew by 14 per cent (with mobile phone-based advertising up 38.1 per cent).

But with national news brands, regional news brands, magazines brands and TV advertising all down – it looks like most of the advertising growth is going to US-based technology giants Google and Facebook.

Press Gazette’s Duopoly campaign has highlighted concerns that the pair are squeezing news providers out of the market in the UK.

National newsbrands saw their digital advertising income grow by 15.6 per cent in the first half of the year and regional newsbrands were up 15.3 per cent per cent year on year.

But overall advertising for national newsbrands (print and digital combined) declined by 8.5 per cent year on year and regional newsbrands fell by 15.3 per cent.

For magazines digital advertising fell by 9 per cent in the first half and overall ad revenue was down 15.2 per cent.

The forecast is for national news brand advertising to decline overall by 7.8 per cent this year from last year’s £1.1bn total.

Regional news brands are forecast to drop by 12.8 per cent in 2017 from last year’s £1bn advertising total.

And magazine brands are expected to see an 11 per cent drop in advertising, compared with £877m last year.

Meanwhile overall UK internet advertising is forecast to grow to £11.4bn this year with the majority of that money going to Google and Facebook.

Radio advertising grew by 5.2 per cent in the first half of the year driven by a 22.2 per cent increase in digital. It is forecast to improve on last year’s £646m total by 4.2 per cent this year.

Advertising Association chief executive Stephen Woodford said: “Spend on advertising is showing strong resilience, at a time of real uncertainty for UK business…The upgrade of our 2017 forecast by a further one per cent, the equivalent of an additional investment of £190m, should be seen as a cautious indicator of continued growth in the UK economy.”

Comments

1 thought on “Internet growth fuels record £10.8bn UK ad spend in first six months of 2017 - but news brands and magazines lose out”

  1. Uk regional news publishers have only themselves to blame for the ongoing decline in both copy sales numbers and ad revenues due to the conscious decision to dumb down content in favour of free copy and photos from the public,believing wrongly that whatever bumf they filled their daily and weekly papers with people would always buy them whilst they tried to monetise digital news and failed miserably, all the online giants did was fill a gap in the market left open by complacency from the local publishers and provide instant free content others chose to ignore

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