Ad market to grow £3 billion, hit £17 billion by 2017

billboardThe UK advertising market is getting a shot in the arm from online operations and it is expected to grow by £3 billion by 2017, reaching £17 billion. According to a new report from PricewaterhouseCoopers (PwC) the UK entertainment and media market will grow at a compound annual growth rate (CAGR) of four percent between 2013 and 2017, reaching £65.5 billion, up from £54 in 2012.

Consumer spending on entertainment and media will grow at a slower rate, 1.8 percent CAGR. The fastest growing segments will be internet and outdoor advertising, along with advertising in video games and TV. Internet access spending is also set to grow over the next five years, thanks to strong demand for mobile devices. Spending on mobile access will double to £9 billion by 2017.

Britain is set to remain Europe’s top market for online ads. The market is expected to grow from £5 billion in 2012 to £8 billion by 2017. PwC head of UK entertainment and media Phil Stoke attributes the strong forecast to widespread adoption of smart devices, reports The Drum.

“Companies which can attract and retain the right workforce and which innovate in their products and the way they deliver them will survive and thrive. These companies, with real leadership, will remain relevant and for them, the outlook is bright,” he said.

The market for video games is expected to grow by 5.4 percent per year, hitting £3.9 billion in 2017. At the same time TV advertising revenues will grow from £3.7 billion last year to £4.7 percent in 2017.

However, newspapers, consumer magazines and B2B publishing will see revenues fall during the next five years, PwC found.