Digital ad spend in the UK is projected to exceed £10 billion in 2017 and account for 50% of all media spending. Mobile advertising revenues are expected to surpass desktop revenues in 2017 and make up 62% of digital display revenues by 2020. Print media revenues for publishers are forecasted to decline significantly between 2010 and 2020 as digital revenues for publishers increase, partially offsetting declines in print. Overall UK ad spending is projected to grow by 4% annually on average between 2010 and 2020, though traditional offline media shares are expected to fall substantially as digital formats like mobile and video on demand continue to expand rapidly.

1. Andy Pearch | 30.01.17 |
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2. MACRO

3. 3
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Digital ad spend
to exceed £10B
in 2017 (50% of
all media spend)
Mobile to exceed
desktop in 2017
and account for
62% of digital
display revenues
by 2020
Source: MediaSense Adspend database

4. 4
£4.1
£2.0
£0.4
£0.8
£0.0
£0.5
£1.0
£1.5
£2.0
£2.5
£3.0
£3.5
£4.0
£4.5
£5.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Publishers Print revenue Publishers Digital revenue
Source: MediaSense Adspend database

5. 5
4% average
growth per year
in annual UK ad
spend
Offline media
share to fall from
74% (2010) to
46% (2020)
TV share to end
the decade
significantly
lower (23%) than
at the start
(26%)
Print share to fall
by two-thirds in
10 years (to
10%). Digital
revenues to
offset 1 in 4 lost
£s.
Desktop display
to lose share
each year as
Mobile becomes
pre-eminent
Mobile to
leapfrog TV in
2018
VOD revenues
(£1.5B) to
exceed News
Print revenues by
2020
0
5
10
15
20
25
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Digital (Other)
Display (Mobile)
Paid Search (Mobile)
Paid search (PC)
Display (PC)
Cinema
Radio
DM/Door Drops
OOH
Print
Broadcasters
Source: MediaSense Adspend database

6. 6
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015 2016 2017 2018 2019
Linear TV All VOD
Source: MediaSense Adspend database

7. 7
TV advertising
revenue, a leading
economic indicator
post-Brexit has seen
declines since the
vote.
H1 2017 estimates
range from flat to -
5%, we would
estimate declines at
the higher end of
this scale.
Even allowing for
stability in H2, the
market looks likely
to decline by 2% on
a FY basis
Source: MediaSense TV SAP database

8. 8Source: Nielsen Media Research / MediaSense TV SAP database

9. 9Source: BARB / Techedge

10. 10Source: BARB / Techedge

11. 11
2%
2%
4%
5%
4%
4%
5%
4%
5%
4%
6%
6%
9%
6%
9%
7%
14%
12%
2010 2016
Source: Nielsen Media Research

12. 12
Millions
Source: Nielsen Media Research

13. 13

14. 14

15. MICRO

16. 16Source: BARB

17. 17
+17% +16% +12% +16%
Each major sporting
event is worth
approximately an
additional 2% to
ITV’s annual spot
revenue
They also have the
ability to support
revenue across the
year. ITV prefers
‘supportive’
advertisers.
Source: MediaSense TV SAP database

18. 18Source: MediaSense TV SAP database

19. 19Source: BARB / Techedge

20. 20Source: BARB / Techedge

21. 21Source: Nielsen Media Research / MediaSense Insights

22. 22Source: MediaSense TV SAP database

23. 23
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24. Andy Pearch
Director
andy.pearch@media-sense.com
+44 (0) 203 637 0566
www.media-sense.com