Advertising spend soars in charity sector

Official figures have revealed that the not-for-profit sector has spent an estimated £458.8million on advertising in the first six months in 2016, up 6 per cent compared to the previous year.

Figures obtained from market research firm Nielson, show that digital and cinema advertising spend almost doubled.

Expenditure on digital advertising rose by 89 per cent over the six-month period, from just £2.9million to £5.5million. Cinema saw a similar trend, with spend rising from £3.1million to £5.5million, up 78 per cent.

Unsurprisingly, with many publications moving away from advertising as a source of revenue and with print circulation in decline, spend in that sector dropped by 22 per cent, from £32.5million to £25.3million.

However, some experts have suggested that negative press coverage of charities may be to blame for the dip.

Elsewhere, outdoor advertising ranked third in advertising expenditure growth, increasing by 36 per cent from £5.5million to £7.4million in the same period.

Radio and television advertising also grew by 17 per cent and 15 per cent respectively.

Daniel Fluskey, head of policy and research at the Institute of Fundraising, said that the move into digital marketing may enable charities to diversify audience reach and possibly lean away from intrusive methods of communication, such as direct mail.

Nonetheless, spend on direct mail had actually increased in 2016, receiving, on the whole, the most investment from charities. More than half the total amount had been spent on direct mail, up from £258.6million to £265.3million.

If you think your charity could benefit from budgeting advice, please contact Moore Thompson.