UK digital ad market growth massively outpaced overall GDP last year, reaching £35.5 billion over the 12 months, according to IAB UK’s latest Digital Adspend report, conducted with MediaSense. This represents an increase of 13% compared to UK GDP’s lowly 1.1%.
With this growth came an increase in focus on video, with 64% of all online display spend now heading that way, up from 51% five years ago. Looking at device, mobile formats attracted bulk of video investment – growing by 20% to £6.1 billion – but connected TV grew at a stronger rate for the first time, rising 22%.
“Whether you’re watching a podcast on your phone or streaming YouTube on the TV, how we consume media is becoming increasingly video-centric and that’s shaping where advertisers are investing budgets. This isn’t just about aligning with engaging content. Digital video ads give brands the creative canvas to create brilliant content themselves and deliver those essential brand building moments. 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.”
While most growth came from display formats, search continued to be dominant, accounting for 47% of all digital ad spend in 2024 and growing 13% year-on-year to hit £16.6 billion.
Elsewhere, digital retail media now makes up 4% of the UK’s total digital ad marketing, growing 23% to reach £1.4 billion. And the gaming ad market grew by 9% to £1.1 billion.
IAB UK forecasts that total digital ad spend will grow 7% in 2025 to reach £38 billion, but warns that going economic uncertainty around tariffs could prevent that from happening. Further ahead, total spend is expected to reach £42.4 billion by 2027, with investment in video display predicted to account for 27% of the market.
