UK adspend for the final quarter of 2022 is set to increase by 4.5% from last year’s record high to a total of £9.5 billion.
According to the Advertising Association/Warc Expenditure Report, a new record level of investment will be set during the forthcoming Christmas period.
The ad association believes money spent on advertising for the World Cup will not affect brands and agencies’ total adspend on Christmas marketing material.
Search advertising – including eCommerce – is predicted to be one of the quickest growing media platforms over the quarter, rising by 7.3% to a total of £3.4 billion. By contrast, TV advertising spend is expected to remain flat during the quarter at £1.7 billion. Video-on-demand however, is forecast to increase ahead of the wider market with expected growth of 4.2%.
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WARC director of data, intelligence and forecasting, James McDonald, believes “higher costs” for advertisers and “household budgets alike” will lead to “muted expectations for the Christmas quarter”.
“Against this deteriorating economic backdrop, a 9.2% rise to £34.9 billion in advertising investment this year would be impressive given that it is near double the average rate of expansion recorded prior to the pandemic,” he added.
The news comes as retailers and brands begin to air their festive ad spots, with the likes of Very, River Island, H.Samuel and TK Maxx debuting their Christmassy marketing materials in the past week.
