1. Advertising in UK –
market, trends, government
regulation, innovation
Mark Leaver
mark.leaver@uktispecialist.com
+44 (0)7884 490937

2. Defining Advertising?
Advertising is a form of
communication intended to persuade
an audience (viewers, readers or
listeners) to take some action, usually
to purchase or consume a product or
service.

3. Defining Advertising?

4. Advertising in the UK
• 13,000 businesses in the sector
• Employs 250,000 people
• Produces £6.2 billion of the UK GVA
annually

5. Advertising is important
Advertising funds 75% of commercial
television, 95% of national
press, 80% of magazines, and 95% of
commercial radio in the UK.
It also drives innovation.

6. Advertising is important

7. Advertising locations
70% in London
6% in NW

8. UK Advertising
• Global market lead
• Household names (WPP, Saatchi etc)
• Recognisable output

9. UK Advertising

10. Advertising industry
Associations: Advertising Association,
IPA, IAB
Skills: Creative Skillset
Press: Campaign, Brand Republic
Industry built on renowned creative

11. Advertising Awards
D&AD as recognised gold standard
BIMA for interactive & digital

12. UK Advertising market

13. UK Advertising market

14. UK Advertising market

15. 0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
TOTAL
Press
TV
Internet
Outdoor & Transport
Radio
Cinema
Advertising Revenue by Medium 2000-2011
£m
Source: AA/Warc – Based on current prices
* Total revenue figure excludes all sponsorship. TV figure includes sponsorship, Radio includes
branded content

16. % Share by medium of total ad revenue
0
10
20
30
40
50
60
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Press
TV
Internet
Outdoor & Transport
Radio
Cinema
%
Source: Advertising Association Expenditure Report 1995-2011
Note: Figures are at current prices and gross.

17. Advertising – regulation issues
• Privacy / Data / Opt In
• Product placement / sponsorship

18. Advertising break

19. Advertising as driver of innovation
• War for attention
• Amplifies disruption

20. Key drivers – UK digital market
• 9th largest global internet population
• Highest per capita online spend in G20:
UK €1563
• 58% smartphone penetration
• 24.7M UK consumers using m-
commerce
• 12% UK households own iPad / tablet
• 37.4MFacebookusers

21. Key drivers
• World has changed
• Flexibility of digital
• Highly targeted
• Track ROI
• Generate dialogue

22. Impact of social media
• Impossible to overstate
• Interaction not broadcast
• Enable peer advocacy
• Generate exploitable data
• Viral

23. Peer advocacy

24. Viral
• Cadburys Gorilla ad 2007
• Millions YouTube views
• Generated parody versions
• 6% sales uplift
• P&G 2012 14M views / 2M+
shares

25. BUT….

26. Avoiding advertising
• Second screen / multiplatform
• Triggered content – Shazam
• Premium service - Spotify

27. New platforms
• Google ($36Bn+ globally 2011)
• Facebook ($3.8Bn globally 2011)
• App / In game
• Mobile

28. New dialogues - Burberry

29. New dialogues - Dominos

30. New dialogues - Heineken

31. New dialogues - Cadbury

32. New formats - Blippar

33. New formats - Kiosked

34. New formats - Matmi

35. New formats - Vouchercloud

36. Likely FDI prospects:
Major ad agencies have London
presence so:
• Audience measurement
• Audience engagement
• Creative innovation
• Effectiveness / ROI

37. Thank you
Mark Leaver
mark.leaver@uktispecialist.com
+44 (0)7884 490937
@mark_leaver