GroupM: UK advertising to surpass £20bn in 2019

29 Nov 2018  |  Scarlett O'Donoghue 
GroupM: UK advertising to surpass £20bn in 2019

Fuelled by digital, UK advertising is expected to increase to £20.8bn next year, surpassing the £20bn mark for the first time, according to the latest forecasts from GroupM.

The figure is up from £19.9 billion in 2018, where growth is forecast to reach 6%. GroupM's 2019 growth prediction from earlier this year is reduced to 4.8% from 5.1%.

'Digital' is around 60% of all advertising investment and accounts for all net UK advertising growth. The medium continues to grow organically, predominately from SME investment, with signs that larger advertisers are becoming "more circumspect" about incremental digital investment.

Pure-play internet increased 11% in 2018 and is expected to continue growing by 9% in 2019.

GroupM forecasts television advertising investment to remain flat in 2018, with 1% growth expected in 2019.

Meanwhile, Facebook is still winning share of audio-visual advertising and is heavily video-biased for large advertisers.

GroupM said the main reason behind this is "convenience and the lust for ‘performance media’".

Print media continue to shrink, with newspapers and magazines collectively shedding about 1.5 share points a year. In 2017, news brands included 12.5% of all ad investment and in 2018 11.1%, with 2019 estimated to drop to 9.8%.

However, even with mitigation from digital sales - now a large minority of ad sales - this reveals an investment trend of -6% in 2018 and -7% in 2019, as the ‘walled gardens’ capture more share, GroupM said.

However, as reported here, there is a new enthusiasm for the medium which was noted by GroupM in its report.

Elsewhere, forecasted radio spot advertising revenue is to rise 10% in 2018 and 7% in 2019. Radio owners will book about £500 million in spot revenue in 2018. This does not include digital and streaming revenues, which are an unmeasured mix of static and dynamic activity, and thus hard to estimate. The annual run-rate is probably above £100 million.

“Future Brexit fall-out remains a complete unknown, but for now the economy is doing OK," said Adam Smith, futures director, GroupM.

"Ad revenue forecasts remain perhaps surprisingly positive, supported by digital commanding a rising share of overall marketing effort from a wider base of marketers large and small.

"The UK’s fluid media market favours optimism too. Advertisers know they can change spending plans almost at will, with low or no friction.”

Latest

The only way is not up: why career zig-zagging is good There are no universal rules for influencing people WPP's strategy for growth: industry analysis Addressable tech can help creatives enrich TV viewing Dan Brooke to leave Channel 4

Related articles

GroupM: UK advertising is predicted to reach £19.9bn in 2018 Blockchain: we all have a self-interest GroupM: ‘blockchain is slow, clunky and expensive’
Leave a comment

Thank you for your comment - a copy has now been sent to the Newsline team who will review it shortly. Please note that the editor may edit your comment before publication.

DATA SNAPSHOT

10 Dec 2018 

Data from Mediatel Connected
Find out more about the UK's most comprehensive aggregator of media data.

Arrange a demo
Advertisement

Newsline Bulletins

Receive weekly round-ups of the latest comment, opinion and media news, direct to your inbox.

More Info
Advertisement