Online advertising became the majority of all UK ad spend last year, in step with China but ahead of all other major markets. 

Direct response has further increased its share to 54% of UK ad spend, fuelled by the self-serve platforms of Google, Facebook and Amazon, while content media nets just 11% of the online advertising pot.

We estimate that all online-delivered channels - including "pure play" online properties, broadcaster VOD, digital out-of-home and online radio - could account for well over 60% of UK ad spend by 2020, but only with improved commitment to industry governance. 

Spotify is now the world’s first publicly listed on-demand music streaming service. Its global footprint generated €4 billion in 2017 from over 70 million paying subscribers and 90 million ad-funded users across 65 countries

As it expands, the service is steadily but surely moving ever closer to profitability, with a 2019 operating profit a very real prospect

So far and for the near future, Spotify’s global pre-eminence versus competition from Apple, Amazon and Google proves remarkably resilient. Plans to build upon its differentiating features will become ever more decisive as the tech titans will continue to wield their resources and ecosystems against the comparatively undiversified company

For much of the online media industry, GDPR compliance has stalled at basic data audits and box ticking, as firms wait for the rest of the privacy regime to emerge

But weighing technicalities of legitimate interest and consent misses the point: transparent consumer value will be the only sustainable basis for processing personal data

The scrutiny of Google and Facebook privacy practices involves an added antitrust dimension, potentially leading to processing limits as remedies

Despite the hype, systems based on the technology underlying bitcoin are a poor match for most use-cases

The term 'blockchain' is nowadays applied to technologies with shared aims and ideals rather than technological unity; few – if any – of these aims require true blockchain, any many are double-edged swords

The promises of blockchain are seductive in the context of programmatic online advertising, but are over-sold

Last month’s Game Developer’s Conference in San Francisco was a triumphant showcase for crossover technologies and ideas designed to attract and engage new customers; ideas coming soon to all parts of the digital entertainment industry

Google and Facebook launched new “Instant App” technologies for game developers on their platforms, which will eventually have a significant impact on mobile app curation and discovery for not just games but the broader entertainment sector

Universal Pictures showed how media and entertainment companies should be working with indie developers to drive franchise development, utilise creative IP, and bring new ideas to market quicker

Ecommerce has grown to 17.5% of retail spend, and accounts for almost all growth in spend. Physical retailers are beginning to feel the effects, with chains reporting falling profits and even bringing in administrators

The UK picture is muddied by a general lack of economic recovery, and irrelevant comparisons with the US. Finished goods stores, however, are clearly under extreme pressure

We are moving into a retail paradigm of online and offline elements being freely matched. To survive this transition, brick and mortar retailers have to become differentiated experiences and close the data gap with e-retailers

There are signs of hollowing-out in the book trade: a lack of disruption at the top line obscures the fact that mid-selling breakthrough titles are becoming rarer, debuting authors is becoming more difficult and loyalty is declining

Publisher tools to overcome these trends are weakening, while self-publishing has introduced fierce competition in price, if not yet quality

To fight the tide, publishers will need to concentrate on the remaining points of differentiation, as well as preserving dedicated retail channels and changing conceptions around reader relations

Engineering excellence and user generated content (UGC) have propelled YouTube to Facebook-level reach, with growing viewing in all demographics and on the TV-set

However, the commercial limits and PR risk of its long-tail content model have prompted a diversification effort involving subscriptions and long-form content

Becoming a major part of Google’s revenue amid fierce OTT competition would require YouTube to be more flexible in its partnerships with the AV industry, and a more aggressive go-to-market strategy

Women at Work 2018

7 March 2018

To celebrate International Women's Day on 8 March 2018 in the centenary of the partial suffrage, Women at Work 2018 promotes the goals of professional women in the UK through:

Greater awareness by large employers thanks to new gender pay reporting requirements. The national mean gender pay gap of 14% confirms a gender imbalance inside most large employers. Only 30% of management positions are held by women, about the same as a decade ago (although the total number of such roles are shrinking). Leadership from the top has is crucial to address stereotypes behind the 'motherhood penalty', 'glass ceiling' and 'glass walls'

Increasing the share of women in top jobs. The voluntary initiative to make business more effective by more FTSE 100 companies appointing women to their boards is aiming for 1 of 3 roles by 2020, up from 28% in 2017. Women, however, hold only 10% of FTSE 100 Executive Director roles, casting a spotlight on the scarcity of female leaders in waiting in the 'executive pipeline'

Boosting female engagement with entrepreneurship, a booming UK trend, and leveraging the power of digital. With just 1 in 5 small businesses being female-led, women often cite networks, role models, and mentors as important enablers

Nicola Mendelsohn, VP of EMEA, Facebook, comments: "We live in a society where the system is often tilted in the opposite direction to women – the digital world has created a level playing field that removes the barriers and eliminates the bias. Every week I meet with women who are starting their businesses through digital channels or inspiring others to do the same as them. This is an important report that charts the success to date and the important progress that is still needed."

The creative industries too will gain from engaging with initiatives to remove barriers to equality of opportunity and realise the talent of women at work. Internal transformation is particularly relevant in 2018 when society-wide soul-searching promises to transform cultural products by further shattering tired tropes.

In this report we develop a rough segmentation of the adult population by level of online use: offline (10% of adults), shallow online (10%), deep online (80%). We examine how online services seeking to reach new audiences increasingly face the obstacle of missing demand rather than a lack of consumer skills or access

The app economy still relies on a limited consumer pool, but ecommerce is now reaching almost all of the deep online. Bridging the current gap between occasional and frequent online buyers is a clear opportunity and we are still in the early days of evolving buying services into shopping services

The only industry monetising all online users is advertising. Ad platforms, led by Google and Facebook, also play a critical role expanding the ranks of the deep online and online immersed. But offline brand display media, led by broadcast TV, remain critical for online brands wanting to expand their audience