UK New Media Industry Faces Off Economic Downturn
97 percent of new media agencies are optimistic for growth, and 80 percent of agencies plan expansion
-97 percent of new media agencies are optimistic for growth -
- 80 percent of agencies plan expansion -
New research revealed today by Adobe Systems UK, the leader in Network Publishing, finds that the UK's new media design industry is expecting to stand firm in the face of the widely predicted technology downturn. More than 90 percent of new media Managing Directors and CEOs are optimistic about opportunities for growth during 2001, on average predicting a 27 percent increase in turnover this year. Eighty percent of agencies predict that their workforce will increase in 2001, with nearly a quarter planning to double their workforce.
The UK's new media industry employs more than 25,000 people and contributes 1631.5 billion per year to the UK economy. The Adobe Brave New World report 2001, based on research conducted by MORI Technology, is the first to canvass the views of frontline new media Managing Directors, CEOs and Heads of Design on the future of their sector.
Ricky Liversidge, Marketing Director, Adobe Systems UK, said: "The Brave New World report shows that the UK's new media industry has escaped largely unscathed from the dot.com bubble burst and reveals a rapidly maturing industry, confident of continued and steady growth in the near to mid future."
The Adobe report reveals the main drivers for this growth as: demand for new media services by blue-chip clients; the explosion of new technologies, and new media agencies' own ability to adapt to market conditions and diversify their services.
Ricky Liversidge said: "New media agencies are waking up to the value of the deep blue-chip purse. Consumers and businesses alike are demanding always-on access to visually compelling content on platforms from mobile phones to PDAs, and blue-chips are looking to the new media sector to help them meet these demands."
"The delivery of anything, to any device at anytime is the cornerstone of our Network Publishing strategy and something the team here at Adobe are working hard to make a reality."
Agency growth continues to be driven by the explosion of new technologies and, in particular, consumer uptake of broadband. Indeed, 64 percent of agencies believe that broadband will make up the majority of their design work within two years, and more than half (52 percent) of heads of design predict increased work for non-PC platforms, such as PDAs and digital television.
Diversification is the watchword for 2001, with more than 40 percent of agencies planning to offer brand development and consultancy services, database design and management. A significant number also plan to compete with the big fish by offering e-CRM, management consultancy and media planning services.
Just 44 percent of agencies now describe themselves as new media agencies, preferring alternative labels such as 'digital communications agency' or 'interactive marketing communications agency'.
According to the Brave New World report, the UK's new media sector is ripe for consolidation. Of the 83 percent of agencies which are independently owned, just 8 percent envisage operating on a fully independent basis in coming years.
Nicky Perrott, Head of MORI Technology, said: "A new media premier league looks set to appear as agencies merge, acquire and partner with other companies. Ultimately, we expect that most small agencies will join up with large global networks, and many of them seem to feel they will have no choice but to do so if they want to survive and grow."
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Please refer to the Adobe Brave New World report VITAL STATISTICS sheet for further details of the report. Copies of the report are available on request.
An online version of the report is also available for download from July 3, 2001 at: www.adobe.co.uk/bravenewworld
For direct access to print ready press publicity photography please visit: www.prshots.com/?chid=2043
Available for Interview
Ricky Liversidge, Marketing Director, Adobe Systems UK Mark Cokes, Senior Business Development Manager for Digital Video Products, Adobe Systems UK Nicky Perrott, Head, MORI Technology
Technical details
In December 2000, MORI Technology conducted 10 in-depth, face-to-face discussions with leading new media agency Managing Directors, CEOs and Heads of Design, to uncover key issues facing the new media design industry. Based on the findings of this initial qualitative research, MORI Technology conducted 150 structured interviews, using a 15 minute telephone questionnaire, amongst new media agency MDs, CEOs and Heads of Design. These interviews took place between 17 January and 2 February, 2001.
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