Ad Pays 7: the Digitalisation of Our Advertising Industry
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2 3 DID YOU Introduction From Stephen Woodford 4 Introduction From James Murphy 6 KNOW? A Look Back At LEAD '18 8 March: Talking Talent At Ad Week Europe 10 CONTENTS April: Scottish Advertising Comes To Dover House 12 Another Stellar Year Of Adspend Growth 14 June: A Historic M.O.U Signing For DIT With Tencent 15 • Advertising supports • Over half of jobs in June: A Cannes Breakfast 16 nearly a million jobs across advertising in the UK are the length and breadth based outside London. July: #timeTo Change Things For The Better 18 of the UK. September: Our Roles As Cannes Lions UK Rep 21 October: Parliamentary Reception 22 • Every £1 spent on • Growth in exports of • The UK exports more advertising contributes £6 to advertising is larger than advertising services than November: The Media Business Course 24 UK GDP – that’s more than that of the wider economy, it imports to the tune of December: Merry ChristmAds! 26 £132bn per year in total! with annual UK exports of £2.9 billion – this is the advertising services worth largest trade surplus in Credos, Our Industry Think Tank 28 £5.8 billion according to the ad services in Europe. Ad Pays 7: Digitalisation Preview 30 • Over a third of the top 20 UK latest figures. Getting The Best Brexit Deal Possible For UK Advertising 32 ad agencies’ revenue comes from overseas business – Front Foot Quarterly Launch 34 that’s almost £300 million. • Advertising finances UK Interview With Keith Weed & Stephen In Campaign 35 culture, media and sport, AAccelerate For Growth 36 valued at £10 billion a year. • The AA and WARC UK Making Our Children Media Smart 38 2018 REVIEW advertising expenditure HFSS - A Proportionate Evidence-Based Response 40 figures show adspend rose • Following the release of Championing UK Advertising On The World Stage 41 6.4% year-on-year to reach the figures, the full year £5.6bn in Q2 2018 – the advertising growth forecast The Mackintosh Medal 42 20th consecutive quarter of • Since 2005 the UK has for 2018 and 2019 were West Coast Trade Mission 43 market growth. Coupled with won more Cannes Lions than upgraded to +6.0% and an overall adspend rise of The Shanghai International Advertising Festival 44 any other European country +4.9% respectively. This 7.2% year-on-year during the – over 1,500! would lead to a projected Meet Your New Front Foot Chairman 46 first half of 2018, to a total adspend total of over A New President, A New Vision 48 of £11.4bn, this was both £23.5bn for 2018 and a the strongest second quarter decade of continuous growth Meet The Team 50 and first half since 2014. for the UK advertising Our Members 52 industry by 2019. What Our Members Say 54 4 5 THE THE YEAR IN REVIEW 2018 was a year of seismic shifts for our advertising industry, as we grappled with the implications of YEAR IN Government legislation around HFSS advertising, the potential impact of Brexit on the UK creative services sector and how to arrest the decline in public trust in advertising. Looking back, I am proud the Advertising REVIEW Association has been involved in so many campaigns to protect our industry’s interests in the face of all those challenges. This review of the year will recap on those activities, but also feature more about our plans for 2019: Our new President Keith Weed and our new Front Foot Chairman Mark Evans are hugely experienced innovative thinkers and their expertise will be at the forefront of our endeavours throughout 2019. My thanks too to our outgoing President, Andy Duncan and Chair, Matt Barwell. In this Annual Review, we also provide updates on the work of Credos, advertising’s think- tank; Media Smart, the media literacy programme; and Front Foot, our unique industry network for advertising leaders who want to have a say on how we shape the future of our industry. There have been many highlights for me this year but here are just three of them for now. Our annual industry summit, LEAD, kicked off the year with speakers from across the political spectrum and truly insightful sessions from advertising leaders. The launch of our timeTo campaign in collaboration with NABS and WACL in April was another particularly significant moment. Designed to stamp out sexual harassment in the industry, we launched 2018 REVIEW the industry’s first ever study by Credos into sexual harassment levels in the summer, along with a new Code of Conduct, superbly written by the team at NABS. This was then followed by Lucky Generals’ brilliant ‘Where Do You Draw The Line?’ campaign in October. Finally, watching the development of our Trust campaign, building on the research from Credos, has been a hugely rewarding experience for me personally, as we gear up for significant industry-wide action to restore public trust in advertising. I hope you enjoy our review of 2018. On behalf of everyone here at the Advertising Association, thank you for your continued support. Stephen Woodford, Chief Executive, Advertising Association 6 7 IT’S TIME IT’S TIME FOR ACTION It was another eventful year for our industry. We were all kept extremely busy as we dealt with the uncertainty FOR around Brexit, concerted efforts to curb advertising freedoms on various fronts, and worked hard to understand the ACTION ongoing issues of declining public trust in what we do. It’s clear the majority of those campaigns will keep running in 2019. It’s hard to see an end to the deliberations over Brexit and its impact on trade and talent, nor will the endemic lack of public trust in advertising get solved overnight. While our industry has argued its case for effective self-regulation around HFSS advertising clearly and forcefully, it remains a key area of concern for politicians and policy makers. I’m confident though that our industry will forge a successful path forward because of our creative and entrepreneurial spirit that we all share. I’ve been proud to see how the whole industry, across agencies, media owners, tech companies and advertisers, can pull together towards a common goal. From the trailblazing initiative, timeTo, to the promotion of British advertising and marketing services at international events, it’s been great to witness and be a part of a UK advertising industry that is working together as a team. In 2019, we will have to pull together again, in fact, in an even greater and more collaborative way than ever before. The future success of our industry will depend on it. An issue with as vast a set of implications for our colleagues as Brexit requires an industry-wide response. 2018 REVIEW The responsibility for keeping the many influential decision-makers in Westminster and Holyrood well informed about the benefits of a self-regulating advertising ecosystem is all of ours. Every single person in our industry will play a vital role in building and shaping advertising’s role as a jewel in the crown of the UK’s creative services. The Advertising Association is the place where we all come together for the common good and now is the most vital time of all for this trade body, which is nearly a century old, to show its real, unique strength - teamwork. James Murphy, Chairman, Advertising Association 8 9 A LOOK BACK AT LEAD '18 We kicked off our busy events calendar “THE POLITICAL IS THE COMMERCIAL with the return of our industry’s flagship IN THIS CASE… IT IS ABSOLUTELY, event LEAD and an in-depth look at UNDENIABLY LINKED TO YOUR 2018 REVIEW how advertising can drive growth COMPANIES’ FUTURES” beyond Brexit. - Chuka Umunna The summit began with a keynote speech from Stephen Woodford, followed by After a short networking coffee break, a personal video message from the Rt. a panel including Mayor of the West Hon. Liam Fox MP, the Secretary of State Midlands Andy Street discussed how the for International Trade as a late minute advertising industry can support the UK change in plans meant the Minister had Government’s Industrial Strategy to drive to attend the Davos Summit. growth in the Nations and Regions. The agenda continued with a captivating The morning was rounded off with speech from Labour’s Chuka Umunna MP the first UK keynote by Stefan Feitoza, and a cerebral take on our industry by Marketing Director Northern Europe at the economist Vicky Pryce, both of them Procter & Gamble, on how the business emphasising the need for innovation has managed to achieve sustainable and responsibility. Following that, a growth in a fiercely competitive industry. panel of business leaders discussed the needs for the freedom of movement for IN JANUARY international talent in a post-Brexit world. 10 11 The importance of international talent to the Bing VP for EMEA Ad Sales Axel Steinman UK’s future as a global advertising hub was was firm in his support for the talented the key theme of a joint lunch with Bing, international colleagues working in Microsoft’s search engine, at Advertising advertising, calling them a “critical success Week Europe. Hosted at Fortnum & Mason factor” for the industry, adding that as a TALKING TALENT on London’s Piccadilly, the event attracted business, “we need to have the talent that leaders from across our industry to discuss can connect with both consumers in the IN MARCH how London thrives from the global talent country and with the wider world”. AT AD WEEK based in the city and how important it is that this pipeline of creativity continues to Stephen Woodford highlighted the ways flow as the UK leaves the EU.