Digital Adspend 2024: UK’s overall digital ad market hits £35.5bn

Investment in video display -  spanning social channels, publishers, outstream, AVOD and BVOD - outpaced total market growth, up 20% to £8.3bn, as advertisers continued to seek out high-impact formats to capture audiences’ attention. 64% of all online display spend now invested in video, up from 51% five years ago. 

This acceleration in advertisers’ video spend correlates with audiences’ behaviour. All age groups under 55 years 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. 

Other key findings include: 

• Total market growth was consistent throughout the year with H1 and H2 both showing a 13% growth rate - indicating that uncertainty caused by the Autumn budget didn’t immediately impact advertisers’ confidence 
• Spend on digital retail media 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 - more women than men are 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

Commenting on the results of Digital Adspend, Jon Mew, CEO of IAB UK, said: “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.”