ADVERTISING - key ECONOMIC STATISTICS
- Advertising expenditure is expected to reach £20bn in 2015, with £6.3bn spent each year on internet advertising, including £1bn on mobile. An estimated £922m is spent on social media advertising. (i)
- UK advertising & marketing created £13.3bn of Gross Value Added (GVA) in 2014 - up from £8.35bn in 2008. (ii)
- GVA in the UK advertising & marketing sector increased by 10.9 per cent year on year in 2014, and by a compound annual growth rate of 8 per cent between 2008 and 2014. (ii)
- There are 482,000 advertising and marketing jobs in the UK creative economy, including 329,000 that are advertising and marketing roles outside the creative industries. Of all the creative sectors measured by the ONS, advertising and marketing has the highest percentage of roles outside the creative industries (68.2%). (ii)
- In 2013, the latest available year, the UK exported £2.64bn of services from the advertising and marketing sector, an increase of 12.7 per cent over 2012. (iii)
Jobs growth predicted for UK Advertising
The Advertising Association has predicted that 70,000 new advertising-related jobs could be created in the UK by 2019.
This would involve advertising-related jobs growing at 14.2%, compared to average predicted growth of 5.6% in the rest of the economy during this period.
Speaking at the Advertising Week Europe conference, Tim Lefroy, Chief Executive at the AA, said: “Across the digital economy, the creative industries and beyond, investment in advertising is creating high quality UK jobs for everyone from actors to analysts.”
The AA predicts that half of the new jobs will feature in production, creation and in house positions, with others found in media and all across the advertising supply chain. Other indicators, like an expected 5.6% growth in ad spend for 2016, show industry’s wider growth has no sign of slowing down.
UK ADVERTISING IN A GLOBAL CONTEXT
The UK will have the fourth largest advertising market in 2016 in terms of spend, according to a forecast by Warc, the marketing information service. It will account for 5.6 per cent of the total spent on advertising across the 12 major markets analysed by Warc.
This estimate was calculated at current prices in Purchasing Power Parities which measure the buying power of local currencies (e.g. US$, GB£ in international markets), enabling international comparisons which strip out the effect of currency exchange movements.
When the figures are collated in US dollars at current prices - i.e. without adjusting for inflation rates in different markets - the UK is forecast by Warc to account for 7.4 per cent of the total spent on advertising across the 12 markets.
Source: Warc, NOvember 2015.