Internet forecast to take nearly half of ad market in 2016

Internet advertising will account for almost half of the UK ad market by the end of 2016, according to a report from Pricewaterhouse Coopers.

Online: internet advertising set to dominate market
Online: internet advertising set to dominate market

The report published today predicts internet advertising will be the only segment of the UK media and entertainment market that will grow by double figures in the next five years.

UK internet advertising was worth £4.96bn in 2011 and PwC predicts this will grow by 12% every year until 2016 to £8.75bn.

The entire UK ad market is estimated to have been worth £14.3bn in 2011 and according to the PwC forecasts it will grow by 4.7% each year until 2016 when it will be worth £18.0bn.

Internet advertising’s share of total UK ad spend will grow from 35.0% in 2011 to 48.6% in 2016 at the expense of a number of traditional media, especially newspapers.

PwC forecasts the TV ad market (including broadcast, online and mobile together) will grow by 2.2% every year from £3.7bn in 2011 to £4.1bn in 2016.

Despite the expected expansion of connected TV and on-demand services broadcast ad revenue will continue to dominate the TV advertising sector, although its share of total TV advertising will decline from 97.3% to 95.1%.

Newspaper advertising is estimated to have been worth £2.72bn in 2011 (of which £2.5bn was print and £217m was online). PwC estimates this will fall to £2.61bn in 2016 (of which £2.3bn will be print and £313m will be online).

To put the newspaper figures into context, PwC estimates newspaper advertising was worth £4.3bn in 2007.

Follow Maisie McCabe on Twitter @MaisieMcCabe

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Six Nations 2016: Why it's never been easier to target rugby fans

Six Nations 2016: Why it's never been easier to target rugby fans

The success of the 2015 Rugby World Cup and the Six Nations coming to terrestrial commercial TV means it has never been a better time to target rugby fans, argues RadiumOne's Rupert Staines.

Share
UK Super Bowl fans on social media: Paddy Power and FA are most followed brands

UK Super Bowl fans on social media: Paddy Power and FA are most followed brands

Over half a million Twitter users in the UK now follow American football-related accounts. Starcount, the social media data analytics company, discovered what people, brands and other sports rank high among their interests.

Share
Campaign Viral Chart: Heinz Super Bowl ad in top spot

Campaign Viral Chart: Heinz Super Bowl ad in top spot

The Heinz ad featuring dogs dressed in hot dog costumes was the most-shared ad this week in a chart full of Super Bowl ads ahead of the big game on Sunday.

Share

Get news by email