UK digital ad forecast 2016-2018

Report Overview

UK digital ad forecast 2016-2018

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UK digital ad forecast 2016-2018

Executive summary: £10 billion annual spend, Google and Facebook at 90% of growth

  • The UK digital ad market has been resilient in the immediate aftermath of the Brexit vote, and set to reach £10 billion in annual value by early next year
  • Growth is likely to remain strong even in the face of a possible economic slowdown next year, thanks to continuing growth of ecommerce and online media consumption
  • We expect media budgets to come under pressure, and this could be to the advantage of digital, which often provides better attribution of short term return on investment; we could see a “flight to attributability”
  • Within digital, growth is concentrated on video, social in-feed and search advertising on mobile, while desktop display is in decline: 2016 will be the first full calendar year when digital desktop ad spend is down year-on-year in the UK
  • Of this growth, Google and Facebook account for close to 90%, thanks to their leading offerings in the fastest-growing categories