Mobile advertising will make the largest contribution to entertainment and media growth to reach a third of total revenue by 2021. According to the latest PwC Global entertainment & media outlook 2017-2021 the UK entertainment and media industry is forecast to increase at an annual growth rate of 3% between this year and 2021, adding £10 billion over five years.
Total revenue will increase from £62 billion in 2016 to £72 billion by 2021, making it the second largest market after Germany.
For Phil Stokes, the Head of Entertainment & Media UK at PwC, it’s clear that the UK media sector will play an important role over the coming five years.
“Technology and digital service continues to dictate growth with companies tapping into where and how consumers are spending their time online. With consumers having more control and greater choice, companies will need to find new ways to stand out and engage with customers.”
In addition, the report finds that virtual reality (VR) is increasing at a much faster rate than other technology areas of the industry, with a projected revenue growth of 76% by 2021.
The PwC Outlook states that smartphone ownership in the UK will reach 89 million by 2021. That’s directly linked to an increase in mobile advertising.
Internet ad revenues are likely to surpass £10 billion and are predicted to grow 8.9% until 2021.
According to Stokes, “mobile Internet advertising is growing faster than any wired sub-component of total internet advertising revenue. Advertising on mobile is an attractive proposition for brands due to high smartphone penetration and relatively good connectivity across the country.”
However, ad blockers continue to be a major challenge for publishers trying to monetise and ultimately the user experience will need to be improved first.
Christopher Vollmer, PwC Global Advisory Leader for Entertainment and Media, adds:
“Amid an ever greater supply of media, businesses that are fan-centric will find themselves with audiences that are more engaged, more loyal, and spend more per capita. To thrive in the experience-driven marketplace characterized by this year’s Outlook, companies need to attract and harness the economic, social, and emotional power of fans.”