The latest expenditure report from AA/WARC has revealed UK adspend rose 5.8% year-on-year to reach £6.0bn in Q2 2019, which is UK advertising’s 24th consecutive quarter of market growth. Adspend over the first six months of 2019 was 5.2% higher than a year earlier, at £12.0bn.
The report reveals particularly strong growth in Q2 2019 compared to Q2 2018 for cinema, with a very impressive rise of 49.6%. Cinema benefitted from the entry of a number of new advertisers in comparison to the same period in 2018, boosting growth substantially.
Karen Stacey, CEO, Digital Cinema Media (DCM) commented: “In a time of trust issues, viewability challenges and declining audiences, cinema and its core proposition is stronger than ever.
“Despite the ever-growing proliferation of content choices across media platforms, people continue to flock to the cinema, with the medium consistently delivering strong audiences. The unique power of the darkened room, big screen and immersive sound captivates our captive audiences, offering advertisers a premium, brand safe and trusted environment where they can entertain and engage people. Cinema audiences are in the best possible context for paying attention and taking in brand stories. A range of brands from motors to entertainment to games & consoles, finance, telecoms and fashion have taken advantage of booking into films this year to create a deep synergy with cinema’s unique audience in an environment they feel comfortable in. We are also seeing more bespoke for cinema content being created, with advertisers pushing the boundaries of the big screen experience.
“DCM is committed to continuing to create a ‘safe haven’ in the cinema for both cinemagoers and advertisers and is confident that cinema will continue to entertain huge audiences. As of Q3 2019, DCM company revenue is up 21%, with 2019 set to be a record-breaking year for advertising revenue on the big screen.”
The report shows adspend growth for 2019 is forecast to rise 5.0% and reach £24.7bn, with the UK’s ad market expected to grow a further 5.3% in 2020. The predicted full year growth figure for 2019 is an upgrade of 0.4 percentage points on the figure forecast at the last release of adspend data in July this year.
Stephen Woodford, Chief Executive, Advertising Association commented:
“These very encouraging adspend figures for Q2 2019 cover the period immediately following the original Brexit date of March 29, demonstrating the continued strength of UK advertising during a time of political uncertainty. Advertising’s dynamism is shown by the growth recorded across many different formats, with particularly impressive performances from cinema, TV VOD and online radio.”
The full report is available to read here http://expenditurereport.warc.com