UK ad market to continue decline, PwC says

UK advertising revenues will continue to decline for the next 18 months at least, according to a new report.


Revenues earned from traditional media such as newspapers and television will continue to slide this year and next with the growth in digital revenues only partly offsetting the decline, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook report.

PwC predicts television revenues will fall to a low of $4.82bn (£2.9bn) next year before recovering to $5.33bn (£3.2bn) by 2013, short of the $6.52bn (£4bn) peak in 2005.

The UK newspaper market as a whole will fall 28% between this year and 2011, the report says, with advertising revenues down 20% over the next three years.

However, PwC says digital marketing will provide a “silver lining”, adding that digital and mobile provide opportunities for those “agile enough to adapt their business models”.

Revenue from video game ads are expected to “outpace” other mediums, the report says, growing 13.8% over the next three years.

Online ad spend grew by 20% to reach €12.9bn (£11bn) in 2008, according to recent figures from IAB Europe.

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