During the 2020 Global Entertainment & Media Outlook, we stated that the total amount of Unite Kingdom E&M revenue would grow at an estimated compound rate of 2.8% to reach £79.8bn in 2024. This represents an incredibly strong increase from the staggering -6.7% decline that was expected during the economic recession and lockdown due to COVID-19.
This year the publication of the Outlook was delayed until a clearer vision of the impact of the pandemic was better understood. There are two points that need to be understood about the overall forecast and analysis. While the projection may be rather robust, there is the chance that the accuracy of the report could be affected by the rapid changes due to the pandemic, which include changes in Government policy. With this in mind, it is best to consult with us for the latest information.
Next, while the pandemic has had a serious effect on the United Kingdom entertainment industry, it has had staggering effects overall on all of the media supply chain, big and small, from paper producers to an app consultancy service. With the mandated social-distancing and self-isolation, many U.K. residents found themselves indoors enjoying gaming, music, internet access, podcasts and other in-home content, which was very good for these providers. However, there is some bad news with this story as those services that earned revenue with people being out and about such as the movies, outdoor events, concerts, outdoor advertising and impulse-bought magazines all suffered.
With that being said, there have been a number of sub-sectors that have opened up allowing for new income models and ways in which to engage with the audience. There have been a number of virtual B2B events, free sports broadcasts, and much more. It should also be noted that the United Kingdom was much better suited to deal with the effects of a global pandemic than it would have been at the beginning of the century. There is much less reliance on print, as digital media has taken a foothold in society with streaming and internet magazines being much more in demand.
It is expected that the media sector will be able to demonstrate its overall agility and rebound as the economy begins to open up once again. This prospect can be reflected in the revenue forecast throughout 2024.
It has been a tough time for the digital advertising world throughout the pandemic. Advertising has suffered on a larger scale than consumer spending on E&M, due to the fact that companies selling products that required consumers to leave their homes had stopped placing ads on numerous media platforms. While digital media was widely affected, it was much milder as opposed to other advertising platforms such as newspapers, cinemas and other traditional outlets. It is expected that the total amount of internet advertising throughout the United Kingdom will be down by about 5% during 2020. Whereas print advertising is expected to be down by about 24% and out of the home to lessen by 30%.
As ad revenue begins to recover from the pandemic, digital advertising is expected to outperform other forms of advertising. More than likely it will rebound greatly from this temporary setback. In regards to consumer spending, the pandemic has not simply shifted gears to digital advertising but cemented it to authority. As we leave COVID-19 behind, brands will need to reinvest in their eCommerce and digital platforms and continue to engage with consumers throughout a number of digital platforms. This is going to help digital advertising revenues to continue to grow during the coming year.