The UK ad industry is set for its eight successive year of growth, despite the short-term effects of the EU referendum, with predicted growth up from 6.3 per cent to 7.2 per cent for 2016, and from 5.8 per cent to 7.2 per cent in 2017.

The figures come from media investment management firm GroupM, which predicts that investment in the advertising industry will grow to around £18.8bn by 2017, with digital advertising continuing to power growth in the industry.

Investment in traditional media advertising is expected to drop slightly, shrinking by 2.6 per cent in 2016, while pure-play digital will see its market share increase to 52 per cent in 2016, and by a further three points in 2017.

Digital display demand continues to rise strongly, with a rise of over 15 per cent predicted for 2017, particularly in social media, while the largest driver is paid search, which GroupM suggests is accelerating again as rising automation, geo-targeting and point of sale immediacy in mobile drives investment.

“We continue to support advertiser investment in digital campaign by investing the data and technology resources needed to inform and efficiently execute these campaigns,” said Nick Theakstone, CEO of GroupM United Kingdom. “Of course, this is crucial as more media become digital, addressable and available in real time.

“However, it is also important that advertisers not abandon top of the marketing funnel activities for creating brand awareness, like TV, with over-investment in digital. We are advising careful consideration in balancing investments to ensure support of long-term brand growth.”