The UK’s digital ad market surpassed £35bn in spend last year, growing by 13% – a far faster rate than overall GDP which stood at 1.1% – according to IAB UK’s latest Digital Adspend report, conducted with MediaSense.
This first half of the year, advertisers doubled down on the content-rich possibilities offered by video display ads, spanning social channels, publishers, outstream, AVOD and BVOD. 64% of all online display spend now invested in video, up from 51% five years ago.
This acceleration in advertisers’ digital video spend correlates with audiences’ behaviour. All age groups under 55 are spending more hours per week watching digital video vs linear TV, according to GWI, providing advertisers with a powerful opportunity to capture consumers’ attention where they are spending their time.
When it comes to device, Adspend shows that mobile formats attracted the bulk of video investment – growing 20% to £6.10bn – but spend on connected TVs grew at a stronger rate for the first time, rising by 22% as advertisers embrace digital video across screens.
Despite the majority of growth coming from display formats, search maintained its market dominance – making up 47% of all digital ad spend in 2024 and up by a healthy 13% year-on-year to hit £16.6bn.
Key findings include:
- Market growth remained steady at 13% in both H1 and H2, suggesting the Autumn budget uncertainty had no immediate impact on advertisers’ confidence.
- Digital retail media spend grew by 23% to a total of £1.4bn – giving it a 4% share of the UK’s total digital ad market.
- The gaming ad market grew by 9% to £1.1bn as gaming audiences continue to diversify and grow – with more women than men now playing across mobile, tablet and laptops according to Ipsos iris.
- IAB UK forecasts that total digital ad spend will grow 7% in 2025 to reach £38bn, although prolonged global economic uncertainty following the introduction of tariffs could impact this.
- By 2027, total spend is expected to reach £42.4bn, with investment in video display predicted to account for 27% of the market, vs 23% in 2024.
Jon Mew, CEO of IAB UK, commented on the results of Digital Adspend: “How we consume media is becoming increasingly video-centric and that’s shaping where advertisers are investing budgets. We expect to see advertisers’ shift to video accelerate over the coming years as new technology diversifies our screen choices and barriers between different media channels continue to erode.”
Download the report here.
Notes
Digital Adspend 2024 is conducted by IAB UK and MediaSense and is based on both data submitted to IAB and MediaSense and modelled spend data for the digital advertising industry between January and December 2024.
Terms used:
- Digital display video: advertisers’ spend on video formats across social channels, publishers, outstream, AVOD and BVOD.
- Digital retail media: UK on and offsite retail media spend, excluding Amazon.
- Gaming: Gaming advertising refers to advertising placed within the game context; in-game, around the game and beyond the game. It can take various forms, such as virtual billboards, influencer or advertorial content within the game, embedded video ads, or brand partnerships.
- CTV: In 2023, IAB UK and MediaSense (then PwC) amended the CTV definition from a channel format to a device, to better reflect how CTV is used by consumers and advertisers. This allows for all video ads, as well as non-video CTV to be included in revenue figures. Non-video spend includes standard and other display formats.
About IAB UK
The Internet Advertising Bureau (IAB UK) is the industry body for digital advertising, committed to building a better future for digital advertising, for the benefit of everyone. They do this by bringing the industry together – with members including media owners, agencies and brands – to tackle vital challenges, show what great advertising can do, and prepare for the future. Visit IAB’s website.
About MediaSense
MediaSense are independent global media advisors. We build high performance media operating models and unlock value for the world’s leading brands.
Engineering Value. Navigating Change. MediaSense Operates in Three Strategic Areas: Models / Partners / Analytics. www.media-sense.com.
Press Coverage: Marketing Week | The Media Leader | Podnews | Marketing Beat | New Digital Age