U.K. Online Video Ad Market Will Be Worth £4.3 Billion in 2018
The U.K. entertainment and media market will be worth £64 billion ($107 billion) by 2018 according to a new report from PricewaterhouseCoopers (PwC), with digital video advertising on social networks and news websites a significant growth area.
According to PwC's report the U.K. market for digital video advertising on social networks and news websites is expected to grow by nearly a quarter every year for the next five years.
Total revenues from video adverts that run alongside clips posted on services such as YouTube and Facebook, as well as on news websites, will more than double from £316 million ($529 million) this year to £717 million ($1.2 billion) in 2018.
Online video will be the fastest growing of all forms of advertising, the report says, and will even outpace the expansion of mobile advertising via apps on smartphones and tablets in the next few years.
The U.K. mobile advertising market is expected to increase by 17 percent annually to reach at total of £2.2 billion ($3.6 billion) in revenue in 2018, according to the report.
Total online video advertising is still some way short of TV advertising. The report finds that in the U.K. it was worth £3.7 billion ($6.2 billion) in 2013 with revenues forecast to reach £4.3 billion ($7.2 billion) in 2018.?
In 2013, the U.K. had the second largest entertainment and media market in Europe at £58.6 billion ($98 billion), behind Germany, and it will maintain this position through 2018. The U.K. market is predicted to grow by 3.1 percent compounded annually (CAGR) from 2013 to 2018 to a value of £64 billion in 2018.?
"It may not be long before digital revenues from print, film, publishing, and music overtake physical revenues in some markets," says Phil Stokes, entertainment and media lead partner at PwC. "Media companies don't need a digital strategy anymore; they need a business strategy, and a business model, which is fit for the digital age.”
Rakhee Jogia, director of display at Rakuten Marketing, had this advice for brand marketers; “Spend across digital channels is increasing as marketers seek more accountable marketing methods and people turn to connected devices. It’s absolutely critical to create a functionality for consumers so that they can take action from your ad. You can immediately add more value to your campaign when your banners become interactive or when your product image or information is dynamic.”
In related news, the BBC released figures for iPlayer usage. These show that TV and radio requests were up 4 percent year-over-year to April, with average daily requests at 8.9 million remaining higher than for much of last year.
For the first time, TV requests from tablets contributed a higher proportion of requests (30 percent) than computers (28 percent). Smartphones and tablets combined contributed almost half of all TV requests to BBC iPlayer.
The profile of BBC iPlayer users has evened out over time in terms of the male/female ratio, but remains strongly under 55 in terms of age, which is younger than the typical TV viewer or radio listener’s profile (although more in line with home broadband users).
BBC iPlayer is used for TV at roughly the same time of day as linear TV viewing, although there is proportionally more daytime and late-peak use.
Sales for DVDs and Blu-rays are in terminal decline, and streaming is on the rise. With so many streaming originals, viewers decide to stay home.