Latest advertising expenditure forecast raises prospect of stronger than expected growth in 2021
Digital ad spend in national news brands is set to grow by 18.2%, according to thelatest Advertising Association/WARC expenditure report.
This is a positive upward revision of 7.3 percentage points compared to the forecast that came out in April earlier this year.
Overall ad spend in national news brands (print and digital) is expected to increase by 12.3% for the full year – an upward revision of 5 percentage points on the previous forecast.
Commenting on the report’s findings, Newsworks’ Chief Executive Jo Allan said: “It’s extremely encouraging that advertising investment in national news brands is set to grow more quickly than previously expected and better reflects the strong readership numbers we have seen over the last 18 months.
“Overall, this latest forecast from AA/WARC points to the positive and growing economic confidence in the UK coming out of lockdown restrictions, with consumer confidence now being at the same level as pre-pandemic levels.”
Looking further ahead, 2022’s growth forecast shows 7.7% expected growth in ad spend for online news brands and 2.8% among news brands overall.
Across the media industry as a whole, the report predicts ad spend will grow by 18.2% in 2021 to reach a total of £27.7 billion, 3 percentage points higher than predicted in April.
Stephen Woodford, the Advertising Association’s Chief Executive, said: “If the AA/WARC expenditure estimates turn out as forecast, then the ad industry will contribute strongly to the nation’s economic resurgence this year and into next.”
You can read the full AA/WARC release here.