GroupM Forecasts UK Advertising Investments Growing To £18.8 Billion In 2017
LONDON, November 14, 2016
UK advertising is set to see the eighth successive year of growth, despite the short-term effect of the EU referendum, with predicted growth up from 6.3% to 7.2% for 2016, and from 5.8% to 7.2% for 2017. This increase in spending takes the industry to an investment of £18.8 billion in 2017, according to the latest media and marketing forecast figures from GroupM, the world’s leading media investment management group.
GroupM’s outlook for traditional media advertising has deteriorated slightly, from -1.1% to -2.6% for 2016 and from +0.5% to -1.4% in 2017. The predicted ad market share for pure-play digital has consequently risen by a point to 52% in 2016 and then up 3 more points 55% in 2017. The UK remains among the most digital-centric advertising markets in the world.
GroupM has found that digital display demand continues to rise strongly with a +15% rise predicted for 2017, particularly into social media, and, within digital, from static to video. The largest driver is paid search which is accelerating again. It benefits from rising automation, geo-targeting capabilities and the point of sale immediacy of mobile for performance-minded advertising.
GroupM’s forecast for the year ahead is continued strong growth in search, which maximises automation and technology. ‘Search’ embraces YouTube’s substantial AdWords trade.
For the first time, GroupM offers an analysis of the aggregate digital advertising investment it manages for its UK clients. This includes paid search which differs to the IAB’s analysis which only includes details on display. GroupM now invests approximately the same amount in digital advertising as in TV (linear and VOD), and half of GroupM’s digital investment is automated, up from 40% in a year.