The figure represents all the money invested by advertisers in commercial TV: linear spot and sponsorship, Broadcaster VoD, and product placement.
TV advertising investment is forecast to grow again in 2015. The Advertising Association/Warc predicts TV ad revenue to grow by 5.5 per cent in 2015.
Online brands and services boost spending
A significant trend in TV advertising is the increasing investment from online brands and services, such as Amazon, Google and Netflix.
The figures are based on data from Nielsen, which details advertising investment. They reveal that when online brands and services are grouped together they form the second biggest spending category on TV, having doubled investment since 2010 to over £400 million.
According to Nielsen, in 2014 Amazon and Google each invested £10.5 million in TV advertising in the UK for their online services. Netflix invested £8.5 million.
800 new or returning advertisers on TV
There were 800 new or returning advertisers to TV in 2014 (returning after no TV advertising for at least five years), based on Nielsen and Sky’s AdSmart data. Notable new or returning investors were Ryanair, Booking.com and Swinton Insurance.
TV advertising is better value
TV advertising prices in 2014 were some 40.7 per cent cheaper in real terms than 20 years ago.
Commercial TV dominates viewing and we watched 45 ads a day. 65.8% of TV set viewing in 2014 was to commercial TV channels, meaning that the average person watched 2 hours 25 minutes of commercial TV a day.
Commercial impacts – the number of TV ads watched at normal speed during 2014 decreased by 3.3% compared with 2013 but have grown by 27% over the past ten years. The average viewer watched 45 ads a day – seven ads more a day than ten years ago. Collectively the UK watched an average of 2.65 billion ads a day in 2014.
Lindsey Clay, chief executive of Thinkbox, said: "This is the fifth consecutive year that TV advertising revenue has increased in the UK. Confidence in TV advertising reflects its unrivalled ability to create business profit and sales.
"It is also a testament to the brilliant content invested in by the UK broadcasters and the unique qualities of TV as a medium.
"No other form of advertising can do what TV does. And, as TV viewing evolves to become more flexible for viewers, this is opening up new opportunities for brands to harness its power."