London, 23 February 2017: TV ad revenue in the UK totaled £5.28 billion in 2016, up 0.2% on 2015, according to full year revenue figures provided to Thinkbox by the UK commercial TV broadcasters. This represents the seventh consecutive year that TV advertising revenue has grown in the UK, albeit dampened by the business uncertainty caused by the vote to leave the EU.
The figure represents all the money invested by advertisers in commercial TV across all formats and on every screen: linear spot and sponsorship, Broadcaster VOD, and product placement.
Based on 2016 data from Nielsen, online businesses* – including brands such as Amazon, Confused.com, Facebook, Google, Just Eat, Netflix and Purplebricks.com – invested a total of £639 million in TV, an increase of 8% on 2015. The top 5 categories on TV according to Nielsen’s data were:
According to Nielsen, among the biggest spending online businesses on TV were Amazon (£34.3 million, 39% up from 2015), Comparethemarket.com owner BGL Group (£38.8 million, 4% less) and Moneysupermarket (£25.9 million, 6% up).
This figure reflects the number of brands who went on TV for the first time or returned to TV after no TV advertising for at least five years. Notable newcomers included Accor Hotels, Thorntons, Huawei Technologies and David Lloyd Leisure Group. Together, new or returning advertisers accounted for 1.6% of total TV ad revenue in 2016, according to Nielsen.
According to data from the Broadcasters’ Audience Research Board (BARB), Procter & Gamble was the most viewed TV advertiser in 2016 with 34.8 billion views on TV, 14% more than in 2015**. The top 5 advertisers/holding companies were:
WARC estimates for the Advertising Association indicate that the total UK advertising market grew to £21.1 billion in 2016 (up 4.4%), with TV advertising representing 25.3% of it. The AA/WARC forecast that in 2017 the UK ad market will reach £21.8 billion (up 3.2%), with TV forecast to increase by 1.6%.
Despite some recent inflation in TV advertising prices due in part to increased advertiser demand and some decline in TV set viewing, in 2016 TV advertising was 28% cheaper in real terms than 10 years ago.
Lindsey Clay Chief Executive of Thinkbox « Advertisers invest in TV because it works. TV is a trusted environment for brands. It is a place they want to be seen, where they can rub shoulders with high quality shows that are important parts of people’s lives. Its trustworthiness and quality are two of the reasons why TV is the most effective form of advertising. “TV advertising creates huge effects instantly as well as building and maintaining profitable brands for the long-term. For online brands in particular, which have little or no physical presence, TV’s ability to create emotional connections with large audiences is vital. It helps make them feel less virtual and more real. »
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