Latest reports published by PwC on global entertainment and media indicate that Internet advertising will make 75% of all media and entertainment revenue in the next four years.
Internet ads are projected to bring £20 billion.
Revenues from mobile ads will bring £14 billion by 2023 and are expected to account for 75% of all internet ad spend.
‘The internet advertising market in the UK is the largest in Western Europe. It will continue growing to make close to 33% of the total Western European Market by 2023,’ explained the head of media and entertainment at PwC, Mark Maitland. ‘Our internet ads market is mature because consumers are highly connected. It owes to the availability of smartphones and the reliance on apps to perform everyday tasks.’
Meanwhile, customers in the UK will use more data than anywhere else in Europe, with that spending increasing to £17.6 billion.
‘The telecoms market in the UK is significant in Western Europe, with serious competition in both fixed and mobile sectors. After the award of the first UK 5G spectrum last year, operators will launch services to increase speeds for phone users. Of all devices, video content is the most popular and is growing at 22% CAGR. It accounts for 84% of the consumption of data across devices, and that number is expected to grow to 89% in 2023.’
Meanwhile, VR is expected to grow 20% CAGR. VR gaming is the dominant sector at the moment, but VR video is growing and is forecasted to get to £294 million by 2023.
‘Selling VR units in the UK is not lucrative at the moment, but the growth is steady. Last year, there were 2 million units sold. The number is expected to get to 3.5 million in the next four years. Location-based VR is also growing in the area and offers an alternative for people who would rather not buy headsets,’ adds Maitland.
The report expects that podcast ads grow at 34% CAGR to get to £66 million.