The UK advertising market is on the rebound. In 2018, ad spending will increase 9.5% to £20.77 billion ($26.74 billion), compared with last year’s growth of 4.4%, due to easing advertiser anxiety regarding the impact of Brexit and the General Data Protection Regulation (GDPR). Those concerns have had less of an impact this year.
Display advertising in the UK will rise 42.9% to £5.68 billion ($7.31 billion), primarily on the strength of digital video. We forecast that digital video will drive overall ad market growth as advertisers allocate £2.52 billion ($3.24 billion) to the format—a 45.5% increase over 2017. By 2020, video will represent more than half of display ad spending.
High demand for video ad inventory, primarily on Facebook, is generating premium prices for video advertising. Facebook and Google reported strong earnings from digital video during H1 2018, citing increased business from Instagram and YouTube, respectively. Meanwhile, Twitter noted that video content around the FIFA World Cup soccer tournament generated additional revenues.