Discover 5 shocking statistics that will help you understand trends in your industry!

 

1. Social networks will account for one quarter of digital ad spending in 2018

One quarter of advertising spending in the United Kingdom will go to social networks this year, meaning marketers will spend approximately GBP 3.3 billion on social media ads — 24% more than in 2017.

Social media advertising is breaking records

This growth stems from market diversification, which increases overall social media user rates and drives up spending.

Spending on social media advertising has surpassed all traditional advertising formats in the United Kingdom, except television.

However, analysts say that social media ad spending will overtake television by 2020, and social media advertising spending will account for one fifth of all media and television advertising spending — 17.8%.

2. More than three quarters of UK companies say there is a gender pay gap

Although 78% of companies say there is a gender pay gap favoring men in UK companies, 21% of them believe such a situation exists in their own organization.

The pay gap: declarations vs. reality

Among 504 financial decision-makers from various surveyed economic sectors, 13% believe there is no gender pay gap, and 7% "don't know."

However, when it comes to their own organization, only 21% believe there is a gender pay gap favoring men.

62% do not believe there is a pay disparity in their own business.

Among financial decision-makers in London, the split is much more even — 42% say there is a gender pay gap in their organization, and 44% say there is not.

3. Smaller agencies are filling the gaps left by the collapsing AOR model

Two thirds (66%) of business leaders who primarily work with professional marketing service providers expect that in the coming year companies will use a small or medium-sized agency for marketing projects, and 34% will work with individual consultants.

Another 78% say that in five years, service providers with specialized expertise will be more valuable to their company than providers with a broad range of offerings.

56% of respondents say cost is the biggest challenge when working with external agencies.

The thing that would most encourage respondents to hire a small or medium-sized agency instead of a large one is lower costs (49%), followed by easier acquisition and verification (39%).

4. Food inflation falls to its lowest level

Food inflation has fallen to its lowest level in 12 months, and shop price deflation deepened to 1.0% in March from 0.8% in February, marking 59 months of deflation.

Shop prices: deflation and inflation

Deflation in non-food prices eased in March, with prices falling at a rate of 1.9% compared to February, when prices fell by 2.2%.

Food inflation also slowed in March, reaching 0.4%, compared to 1.6% in February.

Additionally, fresh food inflation fell to its lowest level since March 2017. Prices rose by 0.3% in March of the same month last year, compared to 0.9% in February.

5. Display ads will be the largest source of revenue from digital publishing

Publishers recorded a 5.6% increase in total digital revenue in 2017 compared to 2016, reaching GBP 365.5 million. This growth was driven by a 27% annual increase in display advertising revenue.

Display advertising revenue in 2017 rose to GBP 189.2 million from GBP 148.9 million, and subscriptions grew by 8% to GBP 34 million.

In the 12 months to December 2017, B2C publishers recorded positive revenue growth of 8.1%, while B2B publishers recorded a decline of 6.5%.

Despite this, B2B publishers recorded a 15% year-on-year increase in subscription revenue, which now accounts for 45% of their annual revenue.

Summary

The UK digital advertising market is undergoing profound changes. Social media spending will rise to GBP 3.3 billion in 2018 and will soon overtake television. In marketing agencies, the role of small and medium-sized players is growing, and digital publishers are recording gains thanks to display advertising. An interesting note is the discrepancy in perceptions of the pay gap: as many as 78% of companies admit it exists in the UK economy, but only 21% see it within their own organization. Meanwhile, food inflation has fallen to its lowest level in 12 months.