A new report from the Advertising Association/WARC says that the UK’s advertising sector is on track to achieve the strongest recovery of any major global market this year, but TV will not bounceback until 2022.
The report states across the entire UK media landscape, adspend will grow by 15.2 per cent this year to reach a total of £27.0 billion. This will recover the entirety of 2020’s £1.8 billion decline and is expected to precede a 7.2 per cent rise in 2022, by when the market will be worth a record £29.0 billion.
However, the future is not quite as rosy for the TV market which is predicted to rise by 8.8 per cent in 2021, and a further 2.2 per cent in 2022.
According to the report, 2020 saw an increase in spend on TV VoD, which was up 15.7 per cent to £522,700.
The full 2020 picture shows spend on advertising declined by 7.2 per cent to a total of £23.5 billion last year.
The key findings for 2020 show a strong shift by advertisers into online video, social media and search markets.
“Across the economy that advertising serves we saw remarkable innovation and agility, which helped to lessen the economic impact as firms adapted to keep serving their customers, despite the disruption,” said Stephen Woodford, chief executive, Advertising Association.
“The predicted growth this year of 15.2 per cent is good news, with every £1 of advertising spend generating £6 of GDP, this will be a welcome boost for jobs and growth in the wider economy.”