The UK online advertising market is experiencing strong growth, putting it on track for what experts are predicting to be the best year this millennium. According to a recent report by the Advertising Association/WARC Expenditure Report, online advertising spend in the UK is set to reach £16.4 billion in 2021, representing a 15.2% increase from the previous year.
One of the key drivers behind this growth is the shift towards digital channels as consumers spend more time online. With the rise of e-commerce and social media platforms, advertisers are increasingly turning to online advertising to reach their target audiences. This trend has been further accelerated by the COVID-19 pandemic, which has forced many businesses to pivot towards digital marketing strategies to stay connected with consumers.
Search advertising continues to be the largest format within online advertising, with spend expected to reach £7.3 billion in 2021. This is followed by social media advertising, which is forecasted to reach £4.3 billion, and online display advertising, which is expected to reach £4.1 billion. Video advertising is also seeing strong growth, with spend set to reach £2.1 billion this year.
Mobile advertising is another area that is driving growth in the online advertising market. With the increasing use of smartphones and tablets, advertisers are investing more in mobile advertising to reach consumers on the go. Mobile advertising spend is expected to reach £8.8 billion in 2021, accounting for over half of total online advertising spend.
Despite the strong growth in online advertising, traditional channels such as TV, radio, and print are still holding their own. TV advertising spend is expected to reach £4.7 billion in 2021, while radio advertising is forecasted to reach £0.7 billion, and print advertising is set to reach £1.4 billion. However, the gap between online and traditional advertising spend is narrowing, with online advertising expected to overtake TV advertising by 2022.
Overall, the outlook for the UK advertising market is positive, with online advertising leading the way in terms of growth and innovation. As consumers continue to spend more time online, advertisers will need to adapt their strategies to effectively reach and engage with their target audiences. With the right approach, the UK ad market is on course for its best year yet this millennium.