Key Takeaways
- In 2023, the London advertising industry's total market value reached £9.2 billion, representing 58% of the UK total ad spend.
- London's ad market grew by 7.8% year-on-year in 2022, outpacing the UK average of 6.2%.
- Digital advertising accounted for 78% of London's £9.2bn ad spend in 2023.
- London employs over 45,000 people in advertising agencies as of 2023.
- 62% of London's ad workforce is under 35 years old in 2023.
- There are 1,250 advertising agencies headquartered in London in 2023.
- Digital advertising spend in London reached £7.2 billion in 2023.
- Social media ads accounted for 42% of London's digital spend in 2023.
- Programmatic advertising comprised 68% of London's digital display in 2023.
- Top London agency M&C Saatchi billed £450m in 2023.
- Ogilvy UK (London-based) revenue £320m in 2023.
- WPP's London offices contributed 42% of group revenue 2023.
- Traditional TV ad spend in London £2.4bn unchanged 2023.
- OOH spend in London tube/street £1.1bn in 2023.
- Press newspapers/mags £320m ad spend London 2023.
London's advertising industry continues to show strong growth, reaching £9.2 billion in 2023.
Agency Performance and Rankings
- Top London agency M&C Saatchi billed £450m in 2023.
- Ogilvy UK (London-based) revenue £320m in 2023.
- WPP's London offices contributed 42% of group revenue 2023.
- Publicis Groupe London billings £1.2bn top-ranked 2023.
- Havas London grew billings 9% to £180m in 2023.
- Independent agency St Luke's London revenue £45m 2023.
- VCCP London billings up 12% to £210m in 2023.
- Dentsu London revenue £280m, 5th in UK rankings 2023.
- Omnicom's London agencies total £950m billings 2023.
- Lucky Generals London new business wins £60m 2023.
- Mother London revenue £55m, creative awards leader 2023.
- BBH London billings stable at £140m in 2023.
- Adam&eveDDB London grew 8% to £90m revenue 2023.
- 72andSunny London billings £35m international focus.
- Manning Gottlieb London media billings £420m 2023.
- Starcom London won £150m new business 2023.
- Initiative UK (London) revenue £260m top media 2023.
- Mindshare London billings £750m WPP leader 2023.
- PHD London grew 11% to £380m in 2023.
- Wunderman Thompson London rebranded revenue £220m.
- Karmarama London awards: 25 Cannes Lions 2023.
- Fold7 London SME specialist revenue £22m 2023.
- New agency launches in London: 45 in 2023.
- Agency mergers in London: 12 deals totaling £500m value.
- Effie Awards: London agencies won 60% of UK Golds 2023.
- ROI average for top London agencies 4.2:1 in 2023.
- Client retention rate 89% for top 20 London agencies.
Agency Performance and Rankings Interpretation
Digital and Technology Trends
- Digital advertising spend in London reached £7.2 billion in 2023.
- Social media ads accounted for 42% of London's digital spend in 2023.
- Programmatic advertising comprised 68% of London's digital display in 2023.
- Video ad spend in London grew 15% to £2.8bn in 2023.
- Search advertising generated £3.1 billion in London 2023.
- CTV/OTT ad spend in London hit £650 million in 2023.
- 85% of London brands use first-party data in ads 2023.
- AI adoption in London ad creation: 47% of agencies in 2024.
- Mobile ads made up 55% of London's digital spend 2023.
- Retail media networks spend £420m in London digital 2023.
- DOOH digital out-of-home reached £450m in London 2023.
- Native advertising revenue £380m in London digital 2023.
- 92% of London ad execs use GDPR-compliant tech stacks.
- Audio streaming ads £120m in London platforms 2023.
- AR/VR ad experiments by 32% of London agencies 2023.
- Cookie-less targeting adopted by 61% London DSPs 2024.
- Influencer marketing digital spend £1.2bn London 2023.
- Metaverse ad pilots: 18 London brands invested £25m 2023.
- Email marketing automation ROI 4200% for London firms.
- 76% London ads personalized via machine learning 2023.
- Blockchain ad verification used by 29% London agencies.
- Voice search ads emerging at £50m spend London 2023.
- Social commerce ads £310m in London platforms 2023.
- 5G enabled ad experiences boosted 22% engagement London.
- NFT branded content ads £15m experimental London 2023.
Digital and Technology Trends Interpretation
Employment and Workforce
- London employs over 45,000 people in advertising agencies as of 2023.
- 62% of London's ad workforce is under 35 years old in 2023.
- There are 1,250 advertising agencies headquartered in London in 2023.
- Average salary for ad creatives in London is £52,000 per year in 2023.
- 28% of London ad jobs are in digital marketing roles as of 2024.
- Female representation in London ad leadership is 41% in 2023.
- Over 5,200 freelancers work in London's ad industry annually.
- Ad agency staff turnover in London is 18% per year in 2023.
- 15,000 media buyers employed in London ad firms 2023.
- Entry-level ad roles in London pay £28,500 on average 2023.
- 72% of London ad workers have university degrees in 2023.
- BAME representation in London ads is 22% in 2023.
- Account directors in London earn £75,000 median salary 2023.
- 3,800 strategists work in London ad agencies 2023.
- Remote work adopted by 35% of London ad staff post-2022.
- Ad tech specialists in London number 2,100 in 2023.
- Senior creatives salary averages £85,000 in London 2023.
- 1,500 PR-integrated roles in London ad agencies 2023.
- Youth employment in ads: 12% aged 18-24 in London.
- CEO average pay in top London agencies £250,000 in 2023.
- 9,500 production staff in London's ad ecosystem 2023.
- Disability inclusion in London ads at 8% workforce 2023.
- Data analysts roles grew 25% to 1,200 in London 2023.
- Influencer managers: 450 employed in London agencies.
- Ad sales roles pay £45,000 median in London 2023.
- 4,200 client service execs in London ad firms 2023.
- Apprenticeships in London ads: 850 active in 2023.
Employment and Workforce Interpretation
Expenditure and Spending Patterns
- Traditional TV ad spend in London £2.4bn unchanged 2023.
- OOH spend in London tube/street £1.1bn in 2023.
- Press newspapers/mags £320m ad spend London 2023.
- Direct mail ad expenditure £250m in London 2023.
- Radio commercial airtime £180m London stations 2023.
- Cinema screen ads £95m across London venues 2023.
- Tobacco/alcohol restricted spend £10m compliance London.
- Gambling ads peaked £1.05bn UK but London £600m 2023.
- Political ads during elections £45m London focus 2023.
- Christmas peak spend Q4 £3.2bn London ads 2023.
- Super Bowl equivalent UK event ads £20m London 2023.
- Brand sponsorships £850m sports/events London 2023.
- Product placement TV spend £75m London productions.
Expenditure and Spending Patterns Interpretation
Market Size and Growth
- In 2023, the London advertising industry's total market value reached £9.2 billion, representing 58% of the UK total ad spend.
- London's ad market grew by 7.8% year-on-year in 2022, outpacing the UK average of 6.2%.
- Digital advertising accounted for 78% of London's £9.2bn ad spend in 2023.
- The outdoor advertising segment in London generated £1.1 billion in revenue in 2022.
- London's TV ad spend totaled £2.4 billion in 2023, with a 4.5% increase from 2022.
- Between 2019 and 2023, London's ad industry CAGR was 5.1%.
- In Q4 2023, London's monthly ad spend averaged £775 million.
- B2B advertising in London contributed £1.8 billion to the market in 2023.
- Retail sector ad spend in London hit £2.1 billion in 2023.
- Automotive ads in London totaled £850 million in 2022.
- London's ad market is projected to reach £11.5 billion by 2027.
- Post-COVID recovery saw London's ad spend rebound by 12.3% in 2021.
- Finance sector allocated £1.2 billion to London ads in 2023.
- Pharma ad spend in London was £450 million in 2022.
- Travel & leisure ads in London reached £650 million post-2022.
- London's ad GDP contribution was £7.8 billion in 2023.
- E-commerce drove 22% of London's ad growth in 2023.
- Q1 2024 saw London's ad spend up 8.2% YoY to £2.3bn.
- Print media in London generated £320 million in ad revenue 2023.
- Radio ads in London totaled £180 million in 2023.
- Cinema ad spend in London was £95 million pre-2023.
- London's ad market share of Europe was 15.4% in 2022.
- Inflation-adjusted growth in London ads was 3.9% in 2023.
- FMCG sector spent £1.9 billion on London ads 2023.
- Tech ad spend in London hit £1.4 billion in 2023.
- Entertainment ads contributed £720 million in London 2023.
- London's ad export value was £2.5 billion in 2022.
- SME ad spend in London grew 15% to £450m in 2023.
- Luxury goods ads in London totaled £380 million 2023.
- Gaming ad spend reached £280 million in London 2023.
Market Size and Growth Interpretation
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