In the United Kingdom, there has been a significant drop in advertising revenues for traditional media such as TV and newspapers and now the UK advertising industry is pinning its hopes on increased spend on digital media giants such as Google and Facebook for registering growth next year.
It is expected that for the first time next year, the £20bn mark would be broken by the amount expected to be spent by UK advertisers. But hat mark is expected to be surpassed because of continuance of high spending levels in digital advertising.
It is forecast that nest year, there would be a growth of 8.6 per cent in the amount spent on internet advertising and expected to reach £12.8bn. According to a report from the advertising media company GroupM, there would be an increase in growth of 4.8 per cent in the total UK ad market to reach £20.8bn.
“Digital is now around 60% of all advertising investment and accounts for all net UK advertising growth,” said Adam Smith, the futures director of GroupM. “Digital [is] commanding a rising share of overall marketing effort from a wider base of marketers large and small.”
GroupM also predicted a drop of 0.7 per cent in the overall advertising spend for traditional media which includes TV, newspapers and magazines, radio and outdoor advertising modes such as hoardings.
Small and medium-sized businesses are the driving force behind the growth in digital ad spending, Smith added. He added that there is a certain degree of hesitation among larger businesses to increase spending in digital advertisement.
Digital advertisement spending worth hundreds of millions which was considered to be ineffective has been cut by Procter & Gamble which is the largest advertiser in the world and advertises some of the most well known brands that it owns such as Gillette and Pampers among many others.
On the other hand, warning that inappropriate content on online platforms such as Facebook and Google has at times made them “little better than a swamp” has been issued by Unilever, the world’s second largest advertiser and owner of brands from Marmite to Magnum.
The report also estimates a growth of 1 per cent in television advertising at £4.36bn.
The continuing fall in spending in print titles next year has been noted to by the major driver for the overall decline in spending on traditional media.
The report further forecast national newspaper advertising in the UK would drop by 9.4 per cent at £764m in 2019 from £843m this year. This is despite the fact that there has been an increase in the advertisement spending on the websites of national newspapers but that has not helped in growth of the overall ad revenue. On the other hand, the report forecast a drop of 8.8 per cent in advertisement revenues in the already struggling regional newspaper ad market to drop to £660m from £723m. Add spending on consumer magazine wopuld also drop by 5.6 per cent to £351m from £371m.
(Adapted form TheGuardian.com)