UK advertising spend reached £36.6bn in 2023 representing a real term contraction of 1.2% and underscoring the brutal advertising downturn in TV, regional media and magazine advertising, according to a new report.
The UK’s advertising market rose by 6.1% last year, but this equates to a 1.2% contraction in real terms after accounting for high inflation, according to the latest annual Advertising Association/WARC Expenditure analysis.
Advertising is seen as a bellwether of the economic climate and in the past year the sector has been buffeted as corporate clients cut back on spending. This has hit broadcasters such as ITV and Channel 4. Dame Carolyn McCall, chief executive of ITV last year said that the industry was in the “worst advertising recession since the global financial crisis.”
The AA/ WARC report found that TV advertising spend fell almost 9% dropping from £5.3bn in 2022 to £4.9bn last year. Advertising spend in magazine brands was also hit badly falling 9% from £553.8m in 2022 to £503.3m last year and in regional media brands it fell almost 10% from £505.2m in 2022 to £454.2m last year.
The report is more optimistic about 2024 forecasting that advertising spend will rise by 5.8% to reach £38.8bn in 2024.
Advertisers will be investing more in brand-building campaigns in 2024, the report says which will help an advertising recovery along with a number of high profile sporting events such as the Euro football championships in June, and the Paris Olympics in July along with the upcoming UK general election.
