Advertising growth will increase at a compound rate (CAGR) of 4.4% per annum as UK consumers spend more on accessing the internet, claims the Global Entertainment & Media Outlook 2013-2017 study.
The money UK consumers pay telecoms providers for web access will reach £15bn by 2017, with the amount spent on internet access on mobile devices doubling to £9bn in the same period.
Phil Stokes, head of UK entertainment & media at PwC, said: "Digital technologies are pervasive and, as a consequence, we believe it’s wrong to say that companies need ‘a digital strategy’: companies need a business strategy that’s fit for the digital age."
The UK is Europe’s largest online ad market and will remain so for the rest of the forecast period as it increases from £5bn in 2012 to £8bn in 2017, a CAGR of 9.9%.
Alongside internet advertising and web access, the fastest growing areas with the entertainment and media sector will be out of home (OOH) advertising, video games, and TV advertising.
The UK is the firth-largest OOH market in the world and second largest in Europe behind France with CAGR forecast to grow by 6% to reach £1.24bn in 2017.
Meanwhile, TV advertising is expected to see a 4.7% increase in CAGR across the period from £3.7bn to £4.7bn.
Stokes concluded: "While profitable growth is difficult to achieve in the current climate, digital technology has plenty of potential to help, both in the way that organisations are structured, and in generating new products and services that are centred on the needs that really matter to customers."
The PwC report covered 13 sectors including TV subscriptions and licence fees, TV advertising, internet access, radio, OOH advertising, video games, filmed entertainment, newspaper publishing, consumer magazine publishing, business-to-business, music, internet advertising and book publishing.