PricewaterhouseCoopers' annual Global Entertainment and Media Outlook report was published this week and it stated that by 2016, internet advertising will account for half of the UK ad market.
UK internet advertising was worth £4.96bn in 2011 and PwC predicts this will grow by 12% every year until 2016 to £8.75bn.The entire UK ad market is estimated to have been worth £14.3bn in 2011 and according to the PwC forecasts it will grow by 4.7% each year until 2016 when it will be worth £18.0bn.
Internet advertising’s share of total UK ad spend will grow from 35.0% in 2011 to 48.6% in 2016 at the expense of a number of traditional media, especially newspapers.
PwC forecasts the TV ad market (including broadcast, online and mobile together) will grow by 2.2% every year from £3.7bn in 2011 to £4.1bn in 2016.
Despite the expected expansion of connected TV and on-demand services broadcast ad revenue will continue to dominate the TV advertising sector, although its share of total TV advertising will decline from 97.3% to 95.1%. Source: Media Week
Phil Stokes, lead entertainment and media partner at PwC, said: “The various segments of the E&M sector are at different stages of digital development, but in all cases, digital is now embedded in day-to-day business. Consumers are demanding digital content that meets their needs – which are increasingly for on-demand entertainment, education and information on mobile devices – and companies have moved past initial experimentation and into a new normal”.
To read the full report, click here
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