Record Year for British TV Advertising Spend Propelled by Digital Brands

Investment in British television advertising reached record levels in 2021 at $7.16 billion (5.46 billion pounds), an increase of 24% year over year as over 1,000 new advertisers used the medium. The figures, based on data from Nielsen Ad Intel, saw an increase of over $1.3 billion (1 billion pounds) on the previous year and saw it beat pre-pandemic levels of spend by 11% with 1,286 new advertisers featuring on TV over the course of the 12-month period. The previous record spend was $6.93 billion (5.28 billion pounds) in 2016. Following the growth of ecommerce during the pandemic, it was also claimed that “online-born” businesses invested $1.47 billion (1.12 billion pounds) in TV alone, up 42% which was the largest increase. In total, these companies represented a fifth of advertising spend featuring on linear television, too. The largest sub-category of these businesses was delivery/food subscription, with TV advertising spend up $77 million (58 million pounds) year over year from brands including Just Eat, Ocado and Deliveroo, followed by online marketplaces up by $46 million (35 million pounds) from the likes of Amazon and eBay. Even social media firms such as Facebook, LinkedIn, TikTok and Pinterest spent $30.2 million (23 million pounds) in total. TV's record rebound “TV came back stronger in 2021 than anyone predicted—surpassing pre-pandemic investment levels—and there are many factors driving its return to growth,” commented Lindsey Clay, chief executive of Thinkbox, the marketing body for commercial British television. “Yes, the short-term bounce back from the pandemic, but also its revitalization by new advertisers, established advertisers reevaluating TV and advanced advertising solutions making it an attractive investment for a wider range of businesses,” she continued. “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.” 2021 proved to be a record year for advertising spend and advertising investment with Dentsu's and the IPA’s Bellwether reports both predicting another major year in 2022. Dentsu’s Global Ad Forecast has estimated advertising spend globally will hit $745 billion (567 billion pounds) this year with the U.K. as one of the top five markets alongside China, Japan, Germany, and the U.S. In the four years leading up to the Covid-19 pandemic prior to 2020, the average number of new-to-TV advertisers was 841. The largest new-to-TV advertiser was alarm system company Verisure, which invested $14.4 million (10.9 million pounds), followed by online property search business Boomin, which spent $11.06 million (8.4 million pounds), home appliance firm DeLonghi with $4.2 million (3.2 million pounds) and seafood brand Mowi, which spent $3.3 million (2.5 million pounds). “Marketers have years of data on the effectiveness of TV for their brands, and many see its impact in real-time, so continuing to invest in TV is a simple decision. Many businesses have a robust measurement model for their TV investment, which can create a feedback loop that supports investment into TV above other media,” said Richard Oliver, managing director U.K. for Magna—part of IPG Mediabrands. He added that most clients felt that video was becoming the most common creative format allowing them to run across streaming to social media platforms. “The TV experience remains enormously powerful amongst those options, so consequently, TV has more potential client budgets to dip into. TV prices are rising as traditional TV consumption falls over the long term, and this will continue to put pressure on TV budgets. But as long as TV delivers ROI for businesses and a quality viewing experience for consumers, then it will continue to thrive.” “As always, the question gets asked—why are brands spending in TV? The answer is simple. TV still delivers fame like no other media,” explained Yatin Patel, head of AV for Publicis Media Exchange. “A peak of 25.7 million individuals watched the Euro 2020 semi-final; where else can you deliver that kind of fame? TV fame not only drives reach, it also helps other media buys work better. More online-born businesses have taken to TV to help drive their web visits and sales.” However, Patel said that the rise in popularity for TV means that the market remained “inflationary” with higher prices, but brands have not been deterred. “The rewards currently outweigh the costs, not only to drive fame and awareness but also to add value to other activations such as search and social. This is why so many advertisers will always have a need for TV on their media plan.” These Are the Trends That Will Shape CTV Ad Spend in 2022