feb mar - Page 18

Research

Record year for UK TV advertising
TV advertising investment in the
UK increased by over £ 1 billion
(€ 1.2n ) in 2021 to reach a total
of £ 5.46 billion , an increase
of 24 % on 2020 ( and 11 % up
on pre-pandemic 2019 ). This
represents a record level of
investment in TV advertising .
The previous high of £ 5.28
billion was in 2016 .
The total , based on
figures provided by the UK ’ s
commercial broadcasters ,
includes all investment in all
forms of TV advertising , linear
and on demand .
According to data from
Nielsen Ad Intel , all
major advertising
categories
increased their
TV investment
in 2021 , but the
largest increase
came from ‘ onlineborn
businesses ’
– businesses that
began online ,
with no prior
bricks and mortar
presence . This
trend was driven
by a pandemicled
boom in
ecommerce
coupled with
TV ’ s ability to drive immediate
growth in web traffic and longterm
brand fame .
Nielsen , which measures
linear TV advertising spend ,
reported that these businesses
invested £ 1.12 billion in
TV advertising in 2021 , an
additional £ 335m compared
with 2020 , up 42 %. They
represented 20 % of all linear TV
advertising spend .
Within the world of onlineborn
businesses , the largestgrowing
sub-category in
2021 was Food Delivery /
Food Subscription , with TV
advertising spend up £ 58m
year-on-year . This was followed
by Online Marketplaces ( up
£ 35m ) and Finance ( up £ 31m ).
Nielsen Ad Intel reported
that , in 2021 , 1,286 advertisers
used TV for the first time , or
returned after 5 + years away .
This follows on from 1,243 new TV advertisers in 2020 .
Between 2015-2019 , the average number of new-to-TV advertisers a year was 841 . The dramatic increase in the last two years ( up 50 %) demonstrates the increasing appeal of TV advertising to businesses of all shapes and sizes .
Verisure , the alarm system company , was the biggest new-to-TV advertiser , investing £ 10.9m in 2021 , according to Nielsen . Other notable new-to- TV advertisers include Boomin ( online property search ), which invested £ 8.4m in TV ; DeLonghi ( home appliances ), which spent £ 3.2m ; and Mowi ( seafood ),
which spent £ 2.5m .
In 2021 , TV advertising was fortunate to benefit from the continued pandemic-induced constraints on some other forms of advertising , notably out-of-home and cinema , where 2021 spend levels remained below 2019 .
In 2021 , according to Advertising Association / WARC figures , cinema advertising investment was up 70 % year-onyear but remained down 69 % compared with 2019 . Out of home advertising was up 25 % year-on-year in 2021 but down 33 % on 2019 .
“ From start-ups to stalwarts , we ’ ve seen a remarkable surge in confidence in the effectiveness of TV advertising ,” declared Lindsey Clay , CEO of Thinkbox , the marketing body for commercial TV in the UK .
“ TV came back stronger in
2021 than anyone predicted
– surpassing pre-pandemic
investment levels – and there
are many factors driving its
return to growth . Yes , the
short-term bounce back from
the pandemic , but also its
revitalisation by new advertisers ;
established advertisers reevaluating
TV ; and advanced
advertising solutions making it
an attractive investment for a
wider range of businesses . And
we should acknowledge that
the huge increase in advertiser
demand last year , coupled
with a return to pre-pandemic
viewing patterns , meant that
TV ’ s price increased . This will
also have contributed to its
growth .”
“ Nonetheless , TV advertising
remains incredible value . And
what TV continues to offer
advertisers is unrivalled : huge
numbers watching on a big
screen with the sound on in
a high quality , brand-safe ,
fraud-free environment ,” she
concluded .
Brits spend £ 300 a year on subscription services
With the average Brit spending
3 hours and 37 minutes online
every day , and an average of 1
hour 21 minutes a day watching
online services such as Netflix ,
research by comparethemarket
reveals UK households spend
nearly £ 300 (€ 360.56 ) every
year on online subscriptions . One in 12 people spend more on subscriptions each month than on clothes . However , one in 25 admit to using a friend or family member ’ s account , with Liverpudlians being the most likely to do so .
According to the research , over half of Brits can ’ t live without Netflix , despite Prime Video having more than 20,000 titles available compared to Netflix ’ s 6,024 .
Not only does Spotify have the biggest share of music streamers worldwide , but it also ranks in fourth position for the subscriptions that people need in their lives – with the music streaming service proving most popular among millennials .
Gaming services Xbox Game Pass , and PlayStation Plus take spots six and seven . PlayStation Plus is most popular with 25 – 34-year-olds ( 4.5 %) whereas Xbox Game Pass is popular with the slightly older generation aged 45-54 ( 4.5 %).
People in London , Manchester and Birmingham spend the most on online subscriptions each month . However , those who live in Liverpool and Leeds are most likely to use the log-in details of family and friends to watch their favourite shows .
“ It ’ s clear that the nation enjoys streaming movies , games and music ,” noted Mubina Pirmohamed , head of digital at comparethemarket . “ However , there ’ s nothing more frustrating than being halfway through your favourite programme or song and having the buffering symbol appear on your screen . It ’ s worth checking your broadband speed occasionally to make sure it ’ s at an optimal level for all of your needs , especially if you live in a busy household with multiple devices using the Wi-Fi .”
18 EUROMEDIA