Enders Analysis: Return to Growth for U.K. Ad Market in 2021

The slump in the U.K. economy in Q2 2020 due to the pandemic-induced lockdown reduced advertising expenditure by close to one-third, according to Enders Analysis, recovering in Q3 and poised for a return to growth in 2021.

With the challenges of 2020, Enders identifies online as the “clear winner of the pandemic ad economy.” The firm estimates the share of online display advertising increased from 44 percent in 2019 to 53 percent in 2020, surpassing offline display for the first time.

For TV, the expected 11 percent decline for 2020 matches the economy’s expected GDP decline rather than exceeding it (as was the case in the 2008-09 recession). Television is expected to recover in 2021, thanks to robust audiences, with a range of 4 to 9 percent growth.

Television has been a “remarkably resilient” medium through the pandemic, Enders says, with high viewing levels—commercial weekly reach of 87 percent for adults and 74 percent for 16-34s—numerous programs with audiences above 5 million and a trusted source of news, information and entertainment. Demand for TV advertising has been steadily increasing, with a strong Q4. Enders is now forecasting the total television market to be down 11 percent across 2020.