The UK is set to post the strongest advertising expenditure growth of any major European market at 18.2 per cent in 2021 to reach a total of £27.7 billion, according to an Advertising Association/WARC Expenditure Report.
Based on advertising revenue data from across the entire media landscape, the report is a significant upward revision from the 15.2 per cent growth forecast issued in April. Coming off the back of an unprecedented downturn as a result of the pandemic, this rise in spending will be the highest on record, recovering the entirety of 2020’s £1.8 billion decline.
Why it matters
“Seventy pence in every pound spent on UK advertising is invested in digital formats, a rate which accelerated greatly last year and is now surpassed only by China”, explains James McDonald, Head of Data Content at WARC. “It is these formats that will lead absolute growth over the coming terms and none more so than paid search, which is seen to be benefitting from burgeoning e-commerce trade.”