No Match Found
UK market set to lead Europe
industry revenue - a third from internet advertising spend
annual growth of UK E&M industry by 2026
For while there is short-term uncertainty in the market, there is greater confidence - and growth to be found - in the long-term direction of the UK E&M industry. Many habits consumers adopted during the pandemic have stuck - and so the content, and the advertising money, is following this trend. What we're seeing is an industry that's more digital, more mobile, and more dependent on advertising in all its forms.
This shift in consumer behaviour helped secure staggering year-on-year growth of 41% for UK internet advertising revenue - reaching £23bn in 2021, and growing a further 12% to 2022. Over the next four years (2022-26), we expect internet advertising revenue to expand at an impressive 6% CAGR, reaching £33bn in 2026. Most of that revenue will come from mobile advertising, with video advertising alone set to reach almost £9bn in 2026.
For those lacking a clear digital path ahead of them, the outlook remains extremely challenging. But most will be looking to accelerate a human-led, tech-powered approach - pushing forward with plans for new digital revenue streams, collaborations or acquisitions to fuel growth. These companies should trust their digital path ahead - the smartest play in the current market is to continue to invest.
“The question of how soaring inflation will knock through to E&M is prompting the industry to rethink and reset its expectations. But companies aren't taking cover - and they're right to trust their judgement, and push ahead with their digital strategies.”
Dan Bunyan Partner, Strategy&