Barclays’ report has revealed that digital advertising ad spend is set to grow to more than £15bn this year.
Barclays’ corporate banking team predicts that marketers will spend more on UK digital ads in 2019 than they did in 2018, despite Brexit.
The double-digit come amid an ongoing focus towards digital in the sector, with out-of-home (OHH) advertising highlighted as a key area for transformation after digital OOH surpassed traditional outdoor for the first time last year.
The report falls in line with recent findings from the Advertising Association (AA) and Warc, which recently outlined how Q3 of 2018 marked the 21st consecutive quarter of growth for the marketing industry. Warc and the AA claimed the uptick was being driven by increased spend on digital advertising, which they predicted would grow 9.8% in 2019, following on from an estimated 13.4% rise in 2018.
The bank believes that M&A activity will continue “at pace” in marketing services this year, with private equity firms maintaining their interest in the sector and restructuring at companies like WPP “presenting a range of opportunities” for the industry.
Sean Duffy, head of TMT at Barclays Corporate Banking, said:
It feels like adtech is slightly pushed to the sidelines, which is a mistake as it is transforming advertising and can be another real growth engine for the UK economy.
Adtech is already helping UK businesses compete on the global stage and will continue to allow brands to market themselves more effectively as further technology advances are harnessed.