The BBC’s new guide to advertising income for media outlets has been designed to help advertisers better understand their own revenue and their potential to attract audiences.
The new report is aimed at helping companies better plan for the future and ensure they can afford to spend more to attract more advertisers to their business.
The guide, which was released by the Advertising Standards Authority (ASA), states that the majority of ad revenue generated in the UK is spent on advertising in the news media, which is an industry that has experienced an economic downturn due to the Brexit vote.
“The media industry’s future depends on the ability of the public to consume media in a way that is relevant and relevant to their daily lives,” it states.
“While the news is an important and powerful platform for delivering information to the public, it is not enough to sustain the industry as a whole.
It is vital that news media companies are able to compete on a more consistent basis with other media organisations.”
The report also outlines the top 20 companies in terms of advertising revenue in the country, with a median revenue of £7.1m, but some smaller companies made it into the top 50.
There are five UK-based companies in the top 10, but only one of those is a media company.
For example, The Times Group is ranked 11th, and has a median ad revenue of just £4.1 million.
According to the ASA, the majority is spent in the digital space, with the bulk of that going towards digital distribution.
Media organisations have to spend an average of £1.7m a day on advertising, and they must spend at least 20% of their advertising budgets on digital advertising.
Digital ad spending has risen from £0.4bn in 2013 to £0,854m in 2020.
However, the ASA warns that this is only the tip of the iceberg when it comes to digital advertising spending.
A large proportion of that spending is on digital media, and the digital ad spending will continue to increase as digital technology is used more widely, but the ASA points out that it does not yet have a way to track which companies are spending more on digital ad spend.
“Digital ad spend is largely discretionary and has become an important source of revenue for digital media companies,” it says.
As a result, it recommends that organisations start looking at their advertising spending now and make the most of it.
In terms of how the industry is doing financially, the report says that the advertising industry has managed to avoid the worst of the economic downturn by focusing on advertising sales, and that they are in a strong position to make money in the future.
“While many media companies have struggled during the past three years, they have been able to adapt to the challenges ahead by adopting more strategic approaches to digital media advertising,” it continues.
Read more about advertising from the BBC