AA/WARC report reaction: 'Green shoots or false dawn?'

New figures from the Advertising Association/WARC Expenditure Report, reveal total UK adspend increased by a record 9.3% to £9.2bn during the first three months of 2024, and is forecast to rise 9.2% in Q2 to reach £9.7bn. This would equate to a rise of 9.3% during the first half of 2024, to a total of £18.9bn.

While the report draws its own conclusions, Decision Marketing quizzes industry chiefs for their take on what it all means for the sector and beyond.

First up is Joint founder Richard Exon, who says: “With a change in UK Government, an Olympics upon us and a newly announced Presidential candidate in the race to the White House, it would be easy to interpret the WARC/AA Report as heralding an imminent period of growth and renewal.

“But only time will tell if we are seeing bone fide green shoots or witnessing a false dawn brought on by non-recurring events like the Euros or the general election.

“One thing’s for sure though, looking at the performance of individual channels, smart marketers and their expert agencies need to be able to execute right across the media mix. Old vs new, legacy vs emerging and brand vs performance is a non-debate. It’s all systems go – with no exceptions – for anybody hoping to win in 2025 and beyond.”

It is a theme that LoopMe international general manager Simon Stone takes up. He comments: “While the data shows that the bumper summer of sport has captured the imagination of advertisers, the smart ones should be thinking about where their customers and prospects fit into the bigger multi-channel picture, to overcome fragmentation challenges.

“For example, our recent research shows that people who use streaming video services for more than two hours a day are also likely to be heavy viewers of linear TV and mobile gamers, but less likely to be heavy users of social media or online video platforms such as YouTube.

“Marketers need to adjust their media mix to ensure they reach the right people in the right place, and only AI-powered technology offers the capacity to build these audience models. The AA/WARC report highlights that AI is already having an impact in digital advertising, so marketers must intensify their search for the right AI solutions to help them make successful ad delivery decisions and reach their desired advertising outcomes.”

For OpenX EMEA vice-president and global head of sustainability Joseph Worswick, the report’s findings are extremely encouraging for the digital ad industry.

He explains: “With the forecasts predicting further growth for 2024 and into 2025, advertisers should be mindful of the increased competition for inventory across all channels and platforms. While marketers battle for consumer attention, publishers that can offer curated audiences to advertisers will be in a strong position to maximise the value of their inventory.

“Buyers will be looking for solutions to connect with audiences across all screens and formats in ways that drive business outcomes.”

Meanwhile, FreeWheel vice-president of international marketing and communications Virginie Dremeaux says: “As premium video continues to expand onto streaming platforms there are more opportunities for marketers to tap into high-quality, engaging content.

“The report highlights increased spend around the Men’s Euros, for example – emphasising the popularity of live TV as a way of combining mass appeal with advanced targeting and incremental reach. The strong growth of BVOD reinforces the positive outlook for media companies who have invested in broadening their offering and for the wider industry as a whole.

“We are seeing great work across the media and advertising industry to reframe linear TV and digital video as one convergent channel; from Barb’s audience measurement to advancements in programmatic, frequency capping and ad pacing technology, these efforts will continue to attract brand investments in the channel while ensuring video advertising delivers on both marketers and publishers’ goals.”

Finally, Trade Desk general manager of business development Jessica McGrogan concludes: “UK ad spend across all channels is up again – a consistent pattern we expect to continue in H2 and beyond as marketers prioritise an omnichannel approach. And as advertisers consider the pounds behind their outstanding campaigns, they’ll ponder on how they can maximise a return on their investments. The answer lies in measurement.

“Google’s sudden backtrack on third party cookies will have left ad execs scratching their heads wondering what next. What remains is the importance of consumer choice as does the question whether Google will truly offer that. And even if they did, let’s not forget cookies and Privacy Sandbox only work on a Chrome browser. We know consumers spend the majority of their time on other channels – so they’re simply not fit for purpose.

“We shouldn’t be distracted by Google’s constant flip flopping as cookies won’t give advertisers the cross-channel insights they need. There are other identity solutions that upgrade the consumer experience and give advertisers a much deeper and comprehensive understanding of consumer behaviour to ensure they are getting the biggest bang for their buck.”