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PwC: Digital advertising sector to grow

21/06/2013

The UK's digital advertising sector is set to thrive over the coming years a new report has claimed, with this optimistic forecast coming in stark contrast to the concerns seen in other industries as the chilly economic climate causes problems with growth.

According to the Global Entertainment & Media Outlook survey from PricewaterhouseCoopers (PwC), expansion in advertising will increase at a compound rate of 4.4 per cent per annum, with the amount of cash spent on the internet especially influential in this positive shift.

This is reflected by the fact that the amount UK consumers pay telecoms providers for web access will reach £15 billion by 2017 - as the government continues its super-fast broadband roll-out, Britain will become one of the best-connected countries in the world, creating a major opportunity for digital marketers.

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."

Alongside internet advertising and web access, the fastest growing areas within the entertainment and media sector will be out-of-home advertising, alongside video games and TV.

However, the web remains crucial - the UK is the largest online ad market in Europe, with recent moves into ecommerce from mainstream brands suggesting that Britain's passion for shopping online is unlikely to be reined in over the next five years.

"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," concluded Mr Stokes.

Figures from the British Retail Consortium recently revealed that online sales grew by 11 per cent in May.