WPP-owned global network GoupM has revealed that the UK has become the third-largest global advertising market in 2023, overtaking Japan due to the weakening of the yen over the last six months and revised expectations in both markets.
Despite the UK’s impressive (4.4%) growth over the last 12 months, the agency’s found that the US and China remain the word’s largest global markets, with Germany, France, Canada, Brazil, India and Australia rounding out the top ten respectively. Brazil experienced the most significant growth (10.3%).
Interestingly, the UK was found to have the largest share of digital revenues relative to other European countries, accounting for a sizeable 82.5% of its total industry advertising revenues in GroupM’s 2024 forecast.
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Whilst retail media was revealed to be one of the fastest-growing channels within the UK market (16.1% in 2024), its 2023 growth was still exceeded by traditional out-of-home advertising. Retail media is however predicted to outstrip TV advertising in the UK by 2025.
Overall, GroupM’s estimates of 5.8% growth (£700 billion) for 2023 are set to be in line with its June forecast, with its predictions for 2024 proving to be slightly more conservative – signposting a deceleration to 5.3%.
Although these figures represent a tangible improvement when adjusted for inflation, they still indicate negative real growth. The firm doesn’t expect to return to positive real growth until 2025, when its predicts its nominal growth rate to return to 5.6%, and global inflation to 4.6%.
