GroupM: UK advertising is predicted to reach £19.9bn in 2018
The UK advertising market has kept its top spot as the fastest growing mature advertising market in the world, with UK advertising expected to exceed £20bn in 2019 according to the latest report from GroupM.
This year, UK advertising is predicted to reach £19.9bn, an increase of £1.1bn since 2017. Growth is mostly stable, though experiencing a slight decline: GroupM forecasts 6.1% for 2018 and 5.1% for 2019, compared to the 6.4% growth achieved last year.
Adam Smith, futures director at GroupM, said one reason that UK advertising investment is “growing faster than the economy, defying Brexit chaos and bouts of consumer fatigue”, is the “colossal digitisation in media and marketing practice, driving up competition, standards and innovation.”
According to the report, pure-play internet and Facebook are the “primary drivers” for advertising growth across the board. Pure-play internet has reportedly increased its share of investment every year since 2000, when it was just 1% of measured advertising. In 2018 it will reach 59%; in 2019, 61%.
In the meantime, print media continues to suffer from shrinking investment. However, the trajectory is improving – having seen a -9.3% year-on-year change in 2017, GroupM expects consumer magazine brands to experience a slightly less depressing -5.6% in 2019.
The report says that is a result of publishers developing “substantial” digital media platforms of their own. Digital could comprise of 31% of national newspapers’ ad revenue in 2018, with a similar story for consumer magazine brands and 20% for regional newspapers.
Meanwhile, TV can breathe a sigh of relief after a -2.4% fall in advertising investment growth in 2017. GroupM forecasts a recovery of 1.7% in 2018 and 2% in 2019, a result of “better reach and monetisation of non-traditional screens”.
Out-of-home, radio spots and cinema remain stable – though GroupM called upon OOH to improve its digital “software” (automation, validation, optimisation) to catch up with its digital screens, in order to reach its full potential.
“Developments in digital measurement can’t arrive soon enough, especially for TV and OOH, and the introduction of PAMCo already demonstrates the value of standardisation and third-party verification,” said Tom George, CEO, GroupM UK.
“Our industry is evolving rapidly, shown through the surge in digital advertising, and we need to keep pace through investment in data in technology to ensure clients continue to effectively engage consumers.”