Digital Adspend 2025: UK’s digital ad market reaches £40.5bn

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 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 3% 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. 

Alongside the revenue submission survey, a sentiment survey was sent to IAB members who didn’t undertake an interview to capture their views on market conditions, challenges, growth drivers and expectations for the future. This information was used, alongside interviews, to provide qualitative insight featured in this report. Some key findings include: 

• 48% of respondents cited AI and automation as a defining force for the sector over the next decade 

• 57% expect digital budgets to increase in 2026, with video, retail media and DOOH forecast to see the strongest gains 

• 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 of 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.” 

From HY 2025, IAB UK is partnering with Oliver Wyman to deliver Digital Adspend. This new collaboration introduced an updated methodology. 2024 full year estimates have been restated to enable year-on-year comparison within this report. As a result of this methodological change, it is not possible to reconcile this new data with editions released previously. 

Methodology

The Digital Adspend report is conducted by IAB UK and Oliver Wyman using a robust and multi-faceted approach. Data is collected from submissions from members and reported numbers in the public domain. This is enriched through statistical modelling to fill any gaps and guarantee full market coverage. In addition to the quantitative data, a qualitative overlay of interviews with key industry players was conducted across platforms, retail media, TV+, audio, and publishing sectors.  

• Retail media: Advertising that takes place within a retailer’s or marketplace’s owned digital properties, such as their website, app, or marketplace platforms. These ads often use the retailer’s first-party data to enhance targeting capabilities and are placed directly within their ecosystem.  

• TV+: TV+ brings together video content across all screens, enhanced by the precision, accountability, and flexibility of digital technology. It includes broadcasters, streamers, and digital-first platforms, reflecting the full breadth of today’s TV experience and how audiences choose to engage with it.