Regardless of Brexit’s instability along with the varying country of sales, UK advertising looks set to delight in its ninth year of growth.
According to GroupM, the world’s biggest investment group, the UK will remain one of those fastest-growing media markets in the world having a 4.8% growth. This will take total investment to $19.8 billion.
This is an update from the team’s previous forecast, six months past, of 4.5%.
GroupM also considers that 2017 will close with better then anticipated expense of $18.9 billion, which is growth of 5 percent.
2018 will see the internet taking an ever-larger share of UK ad investment, together with GroupM estimating that ‘pure play’ internet will maintain a 60% share. The factors at play here will likely rise marketer short-termism and continued growth that is ecommerce, as well as digital audiences.
“Marketing investment remains stable despite a delicate market”, said Adam Smith, GroupM’s Futures Director.
“The focus of marketers stays relentlessly short-term and possibly underweighted relative to long-term manufacturer building in broadcast media. This favours performance-oriented digital media which continue to be the most powerful growth story despite concerns over measurement, transparency, brand safety and other issues”.
“The latest Group M figures reveal new marketers are embracing audio/visual formats more than to deliver engaging brand narratives,” David Barker, Managing Director & SVP, Amobee EMEAcomments.
“Ad spend is a good measure of success, however what we as an industry should observe even more is the way that success is driven and by what.The positive development we are seeing in market is increasing sophistication in how brand marketers are utilizing qualitative strategiesto produce better quality advertisements and much more accurate positioning. Insights and Data are massively contributing to return on investment in digital marketing and positively enhancing the effects of advertising campaigns and experiences for viewers.”
When their investment was stopped by some advertisers due to concerns over manufacturer safety in YouTube. GroupM quotes that two-thirds of these advertisers have returned to their previous levels of investment.
Another issue that is going to define the entire year of advertisements is the start of GDPR in May, which might make marketers careful in the face of new information compliance rules.
GroupM also estimates that heritage media and its related digital elements will continue to realize their advertisement investment shrink 4.4 percent in 2017 plus a additional 2 percent in 2018.
“Our forecast indicates a steady market in an general low-growth consumer spending environment. We are concerned about pressures on marketers to overweight short-term ROI versus brand construction for the long-term, although this is encouraging. It’s imperative they get the balance right”, said Nick Theakstone, CEO, GroupM UK.
“It’s also crucial that the business provide better audience dimension to support media preparation for performance and brand building alike.”