Forecast expecting super strong recovery of ad markets
The fastest advertising recovery of any major European market this year is expected for the UK bouncing back from GBP 1.8 billion decline in 2020. A growth of ad spend by 24.8% this year to reach a total of GBP 29.3 billion is expected by the Advertising Association/WARC Expenditure Report.
It is the largest annual rise on record. Total investment for Q4 2021 with the Christmas advertising season is expected to be GBP 7.9 billion and also the highest level ever recorded.
The forecast also includes revised projections for 2022 showing a 7.7% increase year-on-year to more than GBP 31.5 billlion. Media channels expecting significant recovery following the pandemic include cinema (+123.2%) and out-of-home (+27.7%), while the growth in search, which includes eCommerce spend, is expected to continue its rise (+11.4%).
Ad spend was up 86.5% to reach GBP 7.7 billion in Q2 2021. During the first wave of Covid-19 last year, UK ad spend fell by 34.1% in Q2 2020 at the height of the nation’s first lockdown.
All media have seen a strong recovery in Q2 2021, led by sectors such as out-of-home (+276.8%), digital magazine brands (+155.5%) and direct mail (+104.0%). Newsbrands grew slower but their online ad revenues still saw a double-digit growth (+22.2% national digital and +28.0% regional digital).
Total investment is expected to be GBP 7.9 billion during Q4 2021, the highest level ever recorded during the Christmas period and almost GBP 1 billion more than last year (GBP 929 million). Search advertising is forecast to be one of the quickest growing media in Q4 2021, rising 15.3% to GBP 2,715 million, explained by consumers’ online shopping habits.
TV advertising spend is expected to have its largest Q4 increase in over a decade, expected to rise by 9.0% to GBP 1,564 million, with broadcaster video-on-demand up by 24.1%.
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