Technology | Media | Telecommunications

Saturday, December 01, 2012

Mobile Ad Spending in the UK will Reach $3.5B


How much did UK advertisers spend on online platforms in 2012? How will spending on paid search, display and other digital advertising formats develop in the UK during the next four years? And, how much ad spending in the UK will be devoted to mobile platforms between 2012 and 2016? These are the key questions that eMarketer considered in their latest market study.

As the UK economy struggles to gain new momentum, their major marketers continue to spend. As a result, the UK advertising industry is apparently doing better than many other sectors, according to eMarketer's assessment.

In particular, the ongoing shift from traditional to digital advertising is boosting the overall market outlook.

eMarketer reported that total media advertiser spending increased by a paltry 1.8 percent, to $23.2 billion, in 2011. However, during 2012, traditional advertisers benefited from the increased media attention gained from major sporting events -- particularly the focus on the London Olympics and the UEFA European football championships.

eMarketer predicts that spending on all measured media in the UK during 2012 will be close to $24 billion -- that's an increase of 3.4 percent over 2011.

Meanwhile, eMarketer forecast that advertiser spending for online channels and mobile platforms will rise by 14 percent in 2012 -- reaching $8.8 billion. Also, digital ad spending is expected to pass $10.7 billion in 2014 and reach $12.4 billion in 2016.

The move to digital advertising in the UK seems to have reinvigorated the industry, during a period where it might otherwise have declined. As a result of the trends in traditional British advertising, most market researchers have predicted at least 10.3 percent growth trajectory in digital ad spending this year.

In fact, eMarketer had forecast 14 percent higher spending in 2012 -- and slightly lower growth (10 percent) in 2013.

It's now believed that digital platforms will play an increasingly vital role in UK advertiser strategies. Online and mobile ads will account for 36.7 percent of UK media spending in 2012, says eMarketer. By 2016, the web is expected to attract 45.1 percent of all advertiser spending in the country.

Paid search will continue to account for more than half of all UK digital ad spending throughout the forecast period, as significantly more mobile search volume encourage marketers to focus on that channel.

Display advertising spending will also benefit from steady gains, due to wider use of real-time bidding and video ad formats.

According to eMarketer's latest calculations, British marketer's mobile advertising spend could growth by 120 percent in 2012. Furthermore, by 2016 mobile ad spending in the UK market is expected to approach $3.5 billion.