The UK’s digital ad market surpassed £40bn in spend last year, growing by 10%, significantly outpacing UK GDP growth of 1.4%, according to IAB UK’s latest Digital Adspend study, conducted in partnership with Oliver Wyman.
UK investment in video, spanning social platforms, broadcasters, streamers and publishers, outpaced total market growth, rising 20% year-on-year to £9.3bn. Video now accounts for 23% of total digital ad spend, with TV+ representing 34% of all video investment.
This growth reflects advertisers’ increasing focus on high-impact, full-funnel formats. Social media spend rose 21% to £11.5bn, accounting for 28% of the market. Within this, video continues to drive momentum, now making up 59% of total social investment.
Search maintained its market dominance, accounting for 44% of total digital ad spend in 2025. Investment grew 6% year-on-year to reach £17.9bn.
Retail Media also saw strong growth, up 18% to £3.8bn, as advertisers prioritised closed-loop measurement and first-party data environments. Digital Out of Home (DOOH) increased 11% to £1.1bn, and Gaming rose 11% to £1.3bn.
Despite continued economic and regulatory pressures, growth was steady across the year, with H1 reaching £18.7bn and H2 rising to £21.8bn. The market is forecast to grow 10.3% in 2026 to £44.7bn, reaching £49.1bn by 2027.
Commenting on the results of Digital Adspend 2025, Jon Mew, CEO, IAB UK, said: “Digital advertising has continued to show resilience in a challenging environment. The acceleration of video – particularly TV+ and social video – demonstrates how quickly media consumption is evolving and how confidently advertisers are following audiences. As AI, measurement and full-funnel expectations reshape the landscape, those that combine creativity, data and accountability will be best placed to drive growth in the years ahead.”
