UK Adspend set to rise
The latest adspend figures show a marked upgrade in prospects compared with October 2020 and it is now expected the UK’s ad market will grow by 15.2% this year, an upgrade of 0.8 percentage points from the last forecast. The new forecasts show that the UK’s ad market will also make up for 2020’s decline and accelerate further into growth this year, reaching a total of £26.69bn – above the previous high of £25.37bn recorded in 2019.
In further positive news for the wider creative industry, the decline seen in the UK’s ad market during 2020 (-7.7%) is estimated to be softer than the global rate (-10.2%) and that of the rest of Europe (-13.7%). The UK’s projected ad market growth in 2021 is also expected to be ahead of key international markets, with the US expected to grow 3.8%, Germany 9.3%, Europe (excluding UK) 8.8%, and China 10.3%.
These forecasts are encouraging and come at the beginning of a critical year for UK advertising which in turn will provide positive spend in the promotional merchandise industry. With the vaccine rollout accelerating and a Brexit trade deal in place, the 2021 business outlook is looking brighter and, given the creative industry’s role as an engine for GDP, this is encouraing news for jobs and growth in the wider economy.