As specialists in interactive and innovative direct marketing and sales campaigns, Manchester-based Element Events have investigated the 6.2% drop in TV ad spending.
Advertising industry growth slowing
Markets are constantly developing as the needs of the consumer change, and Element Events were interested in newly published research by the Advertising Association which confirms UK advertising grew just 1.3% year on year in the first quarter of 2017 to reach £5.4bn.
TV advertising took a surprising hit, dropping 6.2%, its first fall since 2009. The changes have seen certain brands focus on lowering overheads release funds to allow a reduction in prices to be passed across to the consumer.
Digital spending rises
It wasn't all bad news for digital advertising after research concluded spending was up across the board, for example, spending was up 25.4% for national news brands, 8% for radio, 7.2% for broadcaster video-on-demand and 27.6% for out-of-home. Cinema also grew 27.6% year on year
Engaging marketing strategies
However, brands have found benefit from introducing more engaging marketing strategies which allow the brand to take advantage of instant results and encourage lasting consumer relationships.
Generation Z consumers are more responsive to brands that can communicate their vision and expose their commitment to the community.
Personalised approaches to marketing are viewed as an efficient manner to improve the local brand image and encourage trust in service and reputation.
Outlook positive
Despite the growth slowing down, the outlook for the advertising industry is still positive.
The spend is expected to increase by 2% this year (a 0.5 percentage point downgrade from previous estimates), with that growth set to grow to 2.6% in 2018 driven by the men’s football World Cup and a likely rise in certainty around the terms of Brexit. TV ad spend is also expected to return to growth
Element Events is an outsourced event sales and marketing firm based in Manchester.
http://www.weareelementevents.com/.