The UK registered the highest growth rate among key markets in Magna’s Global Ad Forecast.
The UK has recorded “stronger than expected” growth so far this year of 12.2%. This was followed by Japan (11.8%), and France (11.2%).
On a full-year basis, Magna is forecasting the total UK ad market will surpass £40bn for the first time this year.
The majority of the growth so far in 2024 has been driven by digital pure players, inclusive of search, retail media, short-form video and social media (+21%). In comparison, traditional media owners (e.g., TV, radio, publishing, out-of-home and cinema) grew at a more modest rate of 4%.
A similar difference in growth between digital and traditional is projected for the full year. Digital pure players are forecast to improve ad revenues by 15% to £36.3bn compared to traditional players who are forecast to grow 1% to £7.5bn.
Traditional revenues are being driven by an acceleration in ad-supported streaming. In addition, during the summer period the UEFA Euro Championship is considered “a minor booster” to adspend while the snap general election is causing a “minor headwind“.
Digital ad revenues are seeing a boost by the rapid adoption of short-form vertical videos, as well as “huge spending” from direct-to-consumer brands and new international ecommerce platforms targeting European consumers “aggressively.”
Magna predicted that automotive, drinks, finance, telecoms, and betting brands would be “the most dynamic spender[s]” in 2024, with all experiencing double-digit adspend growth in the first four months of the year.
The report found that Europe “has been particularly strong to date in 2024” and was expected to “show strength” throughout the year following slower growth in 2023. This has been attributed to a combination of a rebounding macroeconomic environment and the reacceleration of spend in digital media formats.
“Strong growth figures are all the more encouraging for their broad base, with growth seen across most sectors of the market,” Richard Oliver, MD, Magna UK&I said.
“Innovation and investment by global and UK-based media channels is being rewarded by increased demand from domestic and global advertisers”.
