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Over the last few weeks, the U.K. ad industry has been buoyed by forecasts of a major post-pandemic bounce. One prediction by GroupM estimates that the U.K. ad market will grow by a whopping 24% during 2021, with the global market set to jump by 19%.
As advertising is always a reliable barometer of economic confidence, the industry’s big hitters sense the worst of the pandemic is coming to a close and it’s time to turn on the money taps.
However, while the big players prepare their return to the field, there are plenty of smaller brands that didn’t retreat to the sidelines over the past 18 months, especially direct-to-consumer brands that could continue trading in lockdown. During that time, some were able to gain valuable momentum, building market share and profile.
For young, restless brands like this, the lockdown wasn’t a time to go quiet; it was an opportunity to fill a void in the market. As some of the biggest advertisers battened down the hatches to ride out the storm, many smaller brands had no choice but to get out there. For them, a waiting game was a luxury they couldn’t afford.
Thinking back to this time last year, cuts in advertising spend sent shockwaves across the media world. Steadfast out-of-home brands saw the unthinkable happen, with no eyeballs to generate value. The TV market, despite having plenty of eyeballs from those now in lockdown, also suffered with pauses or cancellations in advertiser spends.
TV channels supporting businesses
The TV market suddenly became far more accessible and indeed affordable for many smaller scaling businesses with above-the-line ambitions that were otherwise deemed to be further in the future. As TV ad spend plummeted by $700 million (500 million pounds) between March and June last year, some U.K. broadcasters like Sky, ITV and Channel 4 introduced initiatives to encourage smaller advertisers onto TV for the first time. ITV introduced its Backing Business initiative with special advertising rates and subsidized production packages, while Sky Media launched AdSmart SME with a $1.4 million (1 million pounds) support scheme.
Incentives like this were a good deal, especially as the lower rates were matched by a 21% jump in U.K. TV viewing during lockdown. Fast-rising food brands were among the TV advertising debutants to take advantage. New marketing opportunities like this turbo boosted growth journeys for many businesses, with some building a national profile for the first time.
What next for media spend?
More broadly, the lack of production budgets also went unnoticed, as even the biggest advertisers were either running old creative or making do with low budget user-generated content. The pandemic, albeit for a short time, leveled the playing field.
Now, as the big advertisers return to the market, the world of media will return to its natural pecking order to some degree. Advertising costs are up again, driven by pent-up demand and hopes for post-pandemic recovery.
The last year has shown us what can be done when brands are brave and take their opportunities. Even though the U.K. ad market is now buoyant, media suppliers will still be keen to see new advertisers come on board. Last year showed them the benefit of attracting new net revenue from first-time advertisers.
If those gutsy marketers who saw trail-blazing growth during the pandemic continue to invest above the line as they scale, and they inspire other businesses to do the same, we could see challenger brands sustain their momentum. After all, a rising tide lifts all boats.
