Warc, 4 June 2014
LONDON: The UK entertainment and media market is forecast to
be worth £64bn by 2018, with advertising one of the fastest growing sectors a
new study has said
The latest Global Entertainment & Media Outlook report
from consulting firm PwC projects a 3.1% compound annual growth rate between
2013 and 2018 for the industry, which covers 13 sectors including: TV
subscriptions and licence fees, TV advertising, internet access, radio,
out-of-home (OOH) advertising, video games, filmed entertainment, newspaper
publishing, consumer magazine publishing, business-to-business, internet
advertising, consumer and educational book publishing and music.
Internet advertising, out-of-home advertising and TV
advertising were among the five areas growing most rapidly, the remaining two
being internet access and video games.
The UK internet advertising market, already the largest in
Europe and the third largest in the world behind the US and China, is expected
to grow around three times as fast as the overall entertainment and media
market to reach £9.6bn in 2018.
"London is widely considered the digital advertising
capital of Europe, and linguistic similarities mean that the UK tends to be the
first port of call for US publishers and ad tech players entering the European
market," noted Phil Stokes, Entertainment and Media lead partner at PwC.
"All of this adds up to a vibrant, and still growing, internet advertising
sector."
Within the sector, paid search dominated and will continue
to do so, with revenues set to reach over £4bn in 2018. Mobile is now installed
in second place, its share of internet advertising revenues soaring from 1% in
2009 to 23% by 2018 when it will be worth £2.2bn.
Video internet advertising is the single fastest growing
segment, predicted to almost triple between 2013 and 2018 to reach £717m, a compound
annual growth rate of 23.9%. But this will still only make it the fifth-largest
segment of internet advertising, with just 7% of total revenue.
Of the other two expanding advertising sectors, OOH is
forecast to increase at a CAGR of 5.2% to reach £1.3bn in 2018, with digital
OOH overtaking physical OOH this year. TV advertising is predicted to grow at a
CAGR of 3.5% to reach £4.3bn in 2018.
Commenting on the unstoppable rise of digital, Stokes
observed that "media companies don't need a digital strategy anymore; they
need a business strategy, and a business model, which is fit for the digital
age."
Data sourced from PwC; additional content by Warc staff
No comments:
Post a Comment