UK Rises to Third-Largest Global Ad Market, Surpassing Japan Amid Economic Challenges

The UK has moved up in global ad spending rankings, now positioned as the third-largest market worldwide, following the US and China. This shift comes despite the UK’s economic challenges, as it surpasses Japan, which has been affected by a weakening yen

GroupM’s year-end forecast for 2023 projects the UK’s ad market to grow by 4.6%, slightly reduced from an earlier estimate of 5.3%, and narrowly ahead of Japan’s 4.4% growth. The US ad market is expected to increase by 5.7%, while China, despite its own economic difficulties, is forecasted to grow by 6.1%.

Digital advertising continues to dominate, with over 80% of the UK’s ad expenditure allocated to digital formats—the highest proportion in Europe. However, growth in pure-play digital is slowing, projected at 7.7% for 2023 and 5.5% for 2024.

Traditional linear TV remains under pressure, while connected (personalised) TV and Digital Out of Home advertising are experiencing strong growth. Retail media has emerged as the fastest-growing sector globally.