Digital marketing lifts British ad growth projections through 2020

The Drum 02 Dec 2019 07:18

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GroupM has posted a bullish set of ad growth projections through this year and next, lifted by a growing share of spending being directed towards digital marketing at the expense of traditional companies.

The report from the media buying group for next year paints a buoyant picture of the UK advertising market which is projected to grow 7.8% in 2019, with 2020 falling not far behind at 6.7%, at which point the industry will be worth £24bn.

The report stated: “Despite all the uncertainty facing the United Kingdom in 2019, the media industry has held strong. Our estimate that advertising will grow by +7.8% this year marks the sixth consecutive year of mid-to-high-single-digit growth. Since 2013, the U.K.’s advertising sector has expanded by more than half, up +55% over that year’s levels, and, with that growth, the U.K. is unambiguously the fourth largest market on Earth.

Double-digit digital advertising growth of 15% in 2019 is being led by digital-first marketers including the likes of Facebook, Amazon, Netflix, Alphabet, eBay, IAC, Uber and who will collectively spend over £25bn in 2019.

Not all traditional advertising mediums are becalmed however with outdoor setting the pace as the fastest-growing component, setting the pace at 8% this year before slipping to between 4 and 5% over the next five years.

The report is significantly more optimistic than GroupM's last projection made as recently as June when 2019 ad spend was put at just 6.1%.

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