The latest Global Advertising Forecast from Strategy Analytics predicts that online advertising will blaze a trail in the UK over 2012, with 10.6% of growth to $7.6bn. Other avenues will increase more slowly: TV is predicted to increase by 0.7%, while print ads will gain only 0.3%. More traditional formats including cinema, out of home and radio are estimated to fare better, climbing around 2.6%.
Ed Barton, Strategy Analytics’ Director of Digital Media Strategies, let us in on the reasoning behind the predictions. “The UK is way ahead in terms of the share of spending generated by online,” he explains. “Its share in the UK this year will be around 36% compared to 20% in Europe and 18% globally.”
Meanwhile in Europe, online advertising is predicted to grow 11.7% during 2012. Here online is again the leading field, with that figure compared to 3.4% for TV, 2.4% for other traditional formats. A fall of 0.1% is expected for print advertising.
Widening our scope further to global figures, online is again predicted to be by far the best performer, with spending rising 12.8% to $83.2bn over the year. TV advertising should increase by 5%, print by 0.5% and other traditional forms by 4%.
Barton feels that the biggest danger to online spend in Europe is the threat of a Eurozone default, which will likely cause these forecasts to be instantly worthless. But what if the EU can emerge from the economic crisis unscathed? Barton predicts: “Stronger Western European economies (UK, Germany, France) will grow slowly with the occasional fillip from one-off drivers such as major sporting events.” With the Olympics just around the corner, there will be a huge, ready-made audience ripe for targetting by media campaigns not only in the UK, but also in the rest of the world.