UK advertising spending is going to grow to £23.6 billion in 2020, up from £22.2 billion in 2019, according to the latest forecast from GroupM.
The change marks a 6.7% rise in advertising spend driven by digital formats and a general shift toward digital marketing.
Among the main contributors to this shift are Facebook, Amazon, Netflix, Alphabet, eBay, IAC, Uber and Booking.com which spent over £20 billion on ads globally during 2018.
“With much of the revenue generated by these companies occurring in the U.K., it’s hard not to imagine the flow-through effects on the growth rates described here,” GroupM wrote in a blog post.
The forecast also suggests that digital pure-play media owners will account for 66% of UK ad spend in 2019, increasing to 73% by 2024.
Search is predicted to grow more rapidly than the overall average because of its appeal and strong performance.
“Most large brands will continue to rely on digital media to supplement brand building activities that are often centred around TV or other offline activities, focusing on the use of digital media to drive deeper engagement with consumers who may already have a view on what a brand stands for.”
Traditional TV advertising, however, remains fairly flat at 19% in 2020.
GroupM advises that marketers view media as a means to an end and consider it alongside other strategies and “investments in internal marketing infrastructure, marketing technology software and other external services that support marketing excellence.”