By 2017 the UK advertising industry is tipped to become the country’s fastest growing segment of the entertainment and media industry, growing at an average rate of 4.4% each year. Predicted by PwC’s Global Entertainment & Media Outlook 2013-2017 report, which predicts that the UK ad spend will hit £17 billion in four years time.
Online advertising, Internet access, out of home advertising, video games and TV advertising will be the areas that will exhibit the most substantial growth in investments, the consultancy said as quoted by Warc.
Overall, the country’s entertainment and media market is expected to reach a combined value of £65.5 billion by 2017, growing at a compound annual rate of 4%.
Currently, the UK is Europe’s biggest online ad market and will likely maintain its leading position over the next four years. The market is expected to surge to £8 billion in 2017 after reaching £5 billion last year, exhibiting an average annual growth rate of 9.9%.
TV advertising, which came in at £3.7 billion last year, is forecast to grow by 4.7% a year to £4.7 billion in 2017, making the country the second biggest online TV ad spender globally, after the US.
Other media types such as newspapers B2B publishing and consumer magazines will likely see a drop in revenues during the forecast period. PwC also predicts that in 2017, revenues from subscription television will be higher than those generated by newspapers.