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GroupM: UK Climbs to Third Largest Global Advertising Market

GroupM's report highlights the UK's ascent to the world's third-largest advertising market, led by digital dominance and steady growth, with insights into future trends.

UK Climbs to Third Place in Global Advertising Markets: GroupM Report

In a significant shift, the UK has surged to claim the third spot among global advertising markets in 2023, surpassing Japan. GroupM, a WPP-owned global network, attributes this shift to the weakening yen in Japan and revised expectations in both markets.

Despite the UK's remarkable growth of 4.4% in the last year, the US and China continue to lead as the world's largest advertising markets. GroupM's findings also showcase the robust positions of Germany, France, Canada, Brazil, India, and Australia within the top ten, with Brazil witnessing the most substantial growth at 10.3%.

A standout observation is the UK's dominance in digital revenues compared to other European nations, accounting for a staggering 82.5% of its total advertising revenues in GroupM's 2024 forecast.

Surging ahead, retail media emerges as one of the fastest-growing channels in the UK market, with a projected growth of 16.1% in 2024. Interestingly, while it trailed behind traditional out-of-home advertising in 2023, retail media is forecasted to surpass TV advertising by 2025.

GroupM's estimates for 2023 foresee a 5.8% growth, reaching £700 billion, aligning with its earlier projections. However, the forecast for 2024 leans slightly more conservative at 5.3%, indicating a potential deceleration.

Despite these advancements, GroupM notes that these figures, adjusted for inflation, still indicate negative real growth. They anticipate a return to positive real growth by 2025, with a predicted nominal growth rate of 5.6% and global inflation at 4.6%.