TV flat but UK advertising to surpass £20BN for the first time in 2019 | Media Analysis | Business
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Research from media investment group GroupM has found that digital is delivering all new net advertising growth by commanding a greater share of marketing effort overall and will drive the industry in the UK to be worth £20.8 billion in 2019.
groupM 29Nov2018
GroupM forecasts 6.0% growth for UK advertising in 2018, down from 6.4% in 2017 and has trimmed its 2019 growth prediction from earlier this year to 4.8% from 5.1%. Digital is around 60% of all advertising investment and accounts for all net UK advertising growth and the survey shows that the medium is growing organically, with signs that larger advertisers are becoming more circumspect about incremental digital investment.

However, GroupM forecasts television advertising investment to remain flat in 2018, with 1% growth expected in 2019. This though is a noticeable improvement on the likely 0.3% growth for 2018.

According to Nielsen, key TV categories soft this year include food, household FMCG, retail, entertainment and leisure. Finance is TV’s largest category and motors fifth, and these are growing by high-single-digits in the year to September. So-called share deals remain the principal trading mode in UK TV, which advertisers value for its tolerance of short-run budget revisions, but GroupM found that mixed modes of airtime are becoming more routine as trading embraces more audience falling outside what it calls Barb’s gold standard.

Facebook was seen to be still winning share of audio-visual advertising and is heavily video-biased for large advertisers. The main reason given for this is convenience and the lust for ‘performance media’.

“Future Brexit fall-out remains a complete unknown, but for now the [UK] economy is doing okay,” 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.”