Positive forecast for cinema ad spend in next two years despite drop in 2013; overall UK ad spend expected to pass £20bn ($34bn) in 2015 as a result of digital.

Cinema ad spend in the UK fell 14.5% year-on-year in 2013, according to the latest figures from the Advertising Association/Warc Expenditure Report.

Overall, cinema ad spend accounted for £184m ($310m) of the UK’s overall £17.877bn ($30.1bn) advertising expenditure in 2013.

Despite the drop, cinema ad spend is expected to rise 5.4% in 2014 and 6.9% in 2015.

Last year’s cinema ad spend is also up on 2011’s £169.4m ($285m) and did enjoy a slightly stronger first quarter at £35.5m ($59.8m) compared to 2012’s first quarter of £34.9m ($58.8m).

The steepest year-on-year drop came in the final quarter of 2013 - down 24.7% on 2012.

Growth

The AA/Warc Expenditure Report forecast predicts UK growth of 5.5% in 2014 and 6.5% in 2015, which would take overall UK adspend past £20bn ($34bn) for the first time.

2013’s £17.877m figure was up 3.9% on 2012 with mobile advertising (+95%), broadcast video on demand (+21%) and digital national newsbrands (+19.5%) all experiencing strong growth.

TV spot advertising grew 2.9% in 2013 to £4.233m and is expected to benefit from the increasing adspend around the World Cup, while broadcaster VOD grew 21.2% to £126m boosted by the continued popularity of catch up TV channels.

Tim Lefroy, CEO at the Advertising Association, said: “Another set of positive indicators to support the growth story – every pound spent on advertising returns six to GDP. The forecast explosion in mobile advertising and digital formats points to UK advertising at the centre of a global revolution in consumer information, service and choice.”

The AA/Warc Expenditure Report is the only source that uses ad expenditure gathered from across the entire media landscape, rather than relying solely on estimated or modelled data.

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