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Digital advertising growing by double digits, and the uptick will continue: GroupM’s UK Media Forecasts | What’s New in Publishing

According to GroupM's latest year next year: UK media forecast reports, digital advertising will continue to grow in double digits this year and next.

In 2019, 14.9% growth in digital pure playback media (e.g. excluding digital revenue associated with existing media owners) is expected, which will lead to a 11.1% growth forecast next year.

"More than any other market in the world."

One of the key features of this report is that the UK has grown more than any other market worldwide. It is a 55% increase over 2013, making it the fourth largest market in the world.

UK ads in 2019 will grow 7.8% at £ 22B. This will grow for the sixth straight year in small and medium-sized high numbers. This trend will last until 2020 and GroupM expects to increase 6.7% next year to £ 24B. This is a 4.6% increase in 2020 from the June 2019 forecast.

Source: GroupM this year next year

According to the report, “One of the main reasons for this is that as more and more digital climate marketers replace existing businesses, spending will shift to digital marketing.

Most recent growth is driven by digital first marketers. Companies including Facebook, Amazon, Netflix, Alphabet, eBay, IAC, Uber, and are expected to spend £ 25 million on worldwide advertising in 2019. Growth between 8 people among them will account for about 5% of the world total spending and overall percentage points.

The report said, “The rapid growth of this group of marketers is unlikely to continue in the long run. This is because growth rates should ultimately be normalized to more closely match economic growth. This will contribute to reduced advertising spending across the industry.

On the other hand, the economic situation in the UK will be beyond 2021, so all situations will be the same. As long as the long-term economic outlook created by Refinitiv (increase in personal consumption expenditure + 3.0% and industrial production growth + 1.0%), this model will show growth in advertising over + 5.0% in the next few years.

GroupM this year next year: UK media forecast, December 2019

Source: GroupM this year next year

“There is no chance yet”

Among other formats, the radio is expected to grow + 2.0% next year and approach + 1.0% next year. “Audio streaming services, like audio's long-term viewer durability, help support these results. This not only makes the medium more attractive to existing advertisers, but it can also be interesting for new digitally oriented marketers. ”

Printing will continue to be difficult and the media will continue to decline. National titles are expected to decline by -7.0% this year and -6.0% by 2020.

According to the report, “Digital extensions offered by newspapers and magazines publishers make sure that newspapers and magazines account for less than 10% of total media investment in over 50% since 2019, but the trend does not get worse. % Until recent 2004

The report predicts that digital pure play media owners will account for 73% of all ads in the UK by 2024. In addition, the existing brand's business innovation efforts will bring the company's media plans to digital media.

Marketers as traditional offline-oriented brands invest more and more in direct business concepts, digital business strategies that lack better terminology, such as direct concepts to consumers, sales through third-party e-commerce channels, and focus on driving consumers to digital experiences Expenditure on digital media, including its website or branded content, will increase.

GroupM this year next year: UK media forecast, December 2019

The report said, “Most large brands will continue to rely on digital media to complement their brand building activities around TV or other offline activities. Use digital media already to see what your brand already means.

“At the moment, most brands produce only a small percentage of their income through e-commerce, but some brands drive more than half of their revenue or consumer relations activity in a non-traditional environment, showing that they are unlikely to emerge yet. "

The full report can be downloaded from GroupM.
Next year next year: UK media forecast

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