IPG’s media intelligence wing Magna has forecast growth of 5.7% for UK adspend in 2024, rising from 3.7% in 2023 but warns that a struggling economy will dampen demand.
Traditional media is set to face considerable difficulties across the year, with an expected decline of 2.4% – alarmingly following on from a 6.7% drop over the last 12 months.
This comes despite predictions that total adspend growth will remain stable, owing to 7.8% increase in spend with digital pure-play media owners.
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“Search formats will continue to be fuelled by retail media spending, while the digital video format will benefit from a broader audience and opportunities with Amazon Prime Video introducing ads by default in early 2024,” the report said.
The commercial TV sector is also expected to struggle significantly, with yearly revenues currently down an estimated 9.8%, although broadcasters are finding success via digital, which currently accounts for 19% of TV revenues.
Magna executive vice-president of global market research, Vincent Létang added: “The cyclical events of 2024 (sports, elections) will make reach media and contextual advertising attractive again and stabilise traditional media owner ad revenues: overall +2%, TV +3%.”
