UK Advertisers Set to Spend Additional £ 1bn on Christmas Campaigns | Advertising

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Advertisers are expected to spend nearly £ 1 billion more marketing their products this holiday season than last year, marking the return of the annual big-budget Christmas marketing battle.

UK businesses are expected to spend a record £ 7.9 billion on advertising during the critical ‘golden quarter’ until Christmas, the most lucrative three-month selling period for retailers.

This is the highest quarterly advertising spend on record by the Advertising Association and research firm Warc since the numbers were first compiled in 1982, and a rebound of more than 13% from the holiday season of last year, which was stifled amid Covid restrictions.

Last year, companies cut ad spending and watered down ad campaigns in response to the pandemic, but this year marks the return of big-budget broadcast extravagance. TV ad spending is expected to increase 9% to £ 1.56 billion, the fastest annual growth rate in TV ad spending since 2010.

The authors of the latest forecast said the numbers showed advertisers expected Christmas to go as usual, despite widespread fears that supply chain issues, including clogged ports and worker shortages. and truck drivers, can lead to empty shelves and inventory problems.

“The latest data shows bullish trading in the UK advertising sector despite potential inflationary headwinds and supply chain disruptions heading into Christmas,” said James McDonald, head of data content at Warc.

“Strong fourth-quarter projections for television – a medium heavily exploited by retailers in the Golden Quarter – and research, which encompasses activity on e-commerce platforms, suggests that this will largely be like usual for the industry this year. “

Advertising spend graph

This season is set to be a ‘digital marketing Christmas’ again, with search advertising spending expected to rise 15% to £ 2.7bn, while online display advertising, where the biggest players powerful are Facebook and Instagram, increases 12.7%. to £ 2.4 billion. Online search and display will account for 65% of all ad spend in the Christmas quarter.

Movie theaters and the outdoor advertising industry – which covers everything from billboards and posters to venues at stations, airports, subways, and buses – will see the biggest proportional rebound after being hit the hardest during the lockdown last year.

Cinema advertising, which has seen a resurgence since James Bond’s last film No Time to Die broke box office records last month, is expected to grow 3,160% year-on-year in the last quarter.

The out-of-home market, which practically came to a halt with almost no commuters or domestic travel last year, is expected to grow more than 50% year over year.

While national and regional newspapers will see some growth, with print ad spend up 4.3% and 7.9% respectively, that won’t be enough to make up for the double-digit reduction percentages from last year.

However, online ad spending on national and regional publisher websites is expected to increase 3.8% and 18% respectively, more than recouping the declines seen in these areas last year.

Radio ad spend will rise 10%, while print magazine ad spend will grow 6%, with a 7% increase online, again growing to levels unable to recoup budget cuts from the media. ‘last year.


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