Companiesandmarkets.com

UK advertising industry benefiting from mobile display and video advertising

Press Release   •   Feb 01, 2013 14:08 GMT

The UK advertising industry has endured a difficult five years. Since the downturn began in 2008, businesses have cut back sharply on advertising expenses, causing revenue to contract in 2008-09 and 2009-10 and grow weakly during 2010-11 and 2011-12.

The industry will enjoy a better year in 2012-13. The London Olympic and Paralympic Games should prove a major boost to advertisers as companies increase advertising spending for the events. Industry revenue was estimated to grow 2.9% over the year to reach £18.4 billion.

Approximately 250 large and medium-sized companies dominate the United Kingdom advertising market and accounted for 61% of industry's turnover in 2012.

However, micro businesses with fewer than 10 employees accounted for 93% of all companies in the advertising industry in 2012, and raised their share of total revenue by three percentage points from 2006 to 22% of total local providers' earnings in 2012.

Small players were gaining more opportunities with the rise of Internet-based advertising, which required less capital and human resources, and allows small advertising agencies specialise in catering for a specific industry's needs.

The explosion in popularity of smartphones, tablets and the app revolution has fuelled a more than doubling in mobile advertising to £500 million this year - just four years after the sector struggled to attract £25 million.

UK mobile advertising grew a staggering 132% in the first six months of this year to £181.5 million. Mobile display and video advertising almost doubled in the first six months this year to £50 million, with mobile search soaring by more than 150% to £132 million.

One of the biggest beneficiaries of the rise of digital display advertising, albeit not on mobile, has been Facebook. Analysis puts Facebook UK's full-year ad revenues at £236 million, a healthy 35% year-on-year rise.

Over the next six years, press advertising will lead growth within the UK advertising industry, with providers' earnings climbing 7% annually, while television advertising is expected to develop at slightly less than 6% per annum.

For more information on the UK advertising industry, see the latest research: UK Advertising Industry

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