UK ad spend set to bounce back 12.4% to £24bn next year with UK Government key to newspapers

The UK Government marketing campaigns will be “key” to newspaper ad revenues rebounding next year, according to the UK’s biggest ad buyer.

Group M is forecasting total UK advertising spend of £23.6bn in 2021, which would be the biggest growth (12.4%) seen in more than a decade.  It follows a disastrous 2020 which saw the first decline in the sector of 4.4% to a market total of £21m, following growth of 8.6% in 2019 to £22m.

Print media was one of the worst-hit sectors this year, with an expected decline of 23% – although a rebound of 13% in 2021 is anticipated. Newsbrands were “bearing the brunt” of this year’s decline with an expected drop in ad revenue of 28% in 2020 ahead of 17% growth next year.

Group M “Moreover, many of the print industry’s traditional sources of revenue, such as retailers, continue to face heightened challenges from online-based competitors, shifting activity—both in terms of selling efforts and related marketing—toward pure-play digital media.”

Pure-play digital advertising is expected to grow by 4.9% in 2020 despite Covid-19 pressures, with additional growth of about 12% in 2021 before it tapers off at around 7% after that.

UK ad spend set to bounce back 12.4% to £24bn next year with UK Government key to newspapers