The Advertising Association and WARC have released their Q2 2024 Expenditure Report. According to the report, ad spend in the UK reached £10bn in Q2, marking an increase of 13.4% and exceeding the forecast by 4 percentage points. The total ad spend for the first half of the year also exceeded expectations, growing by 13.5% to £19.6bn.
The Q2 results were reportedly influenced by ‘stronger than expected digital growth’. From April to June, online display and search registered growth of 21.6% and 12.7% respectively, while OOH saw an increase of 17%. This period was also the strongest quarter for TV in over 2 years, owing to the Men’s Euros which drove a 9% increase. Similarly, regional news brands and magazines recorded growth for the first time since 2022, with spend increasing by 1.9% and 0.5% respectively.
James McDonald, Director of Data, Intelligence & Forecasting at WARC, commented on the Q2 findings: ‘Four in every five pounds spent on advertising so far this year has gone towards digital formats, money which has mostly been committed programmatically and which is increasingly leveraging AI tools for further efficiencies. The strong growth across the online sector in particular during the first half of 2024 has put the UK’s ad market on course for its best year since the millennium, if the post-pandemic recovery year of 2021 is discounted.’
Looking ahead
Following their findings, AA/WARC ‘upgraded’ their forecasts for 2024 and now expect ad spend to reach £40.5bn for the first time (marking a year-on-year increase of 10.6%). The annual growth of UK ad spend is therefore also predicted to exceed that of other European markets, including France (8%), Spain (5.7%), Italy (5.4%) and Germany (4.0%). For 2025, AA/WARC predict that ad spend will hit £43.1bn, marking an increase of 6.5%.
Stephen Woodford, CEO, Advertising Association, said: ‘The advertising industry is once again driving UK growth, helping businesses to compete, promote innovation and support jobs. It is an essential engine of the economy and key to the Government’s central ambition to achieve the highest sustained growth in the G7. Advertising has a vital role in funding culture, media and sport — and the results of Q2 show how advertising can play a fundamental part in supporting the success of events such as the Men’s Euros, the Olympics and the Paralympics.’
Featured image: AA/WARC