Video’s £9.3bn surge shows why TV+ is entering a new growth phase

The UK’s digital advertising market reached £40.5bn in 2025, according to the latest IAB UK Digital Adspend Study, conducted with Oliver Wyman. 

While the overall market grew by 10% year-on-year, one format stood out in particular. Video advertising increased by 20% to £9.3bn, making it the fastest-growing major format and accounting for 23% of total digital spend. 

For those working across the evolving television and streaming ecosystem, this growth highlights an important shift in how advertisers are approaching premium video environments. 

The rise of the TV+ ecosystem 

Video today spans a wide range of environments, including connected TV, broadcaster video-on-demand services, streaming platforms and social video. 

Together, these channels form what is increasingly described as the TV+ ecosystem: a converging landscape that blends the storytelling power of traditional television with the data and targeting capabilities of digital media. 

For advertisers, this convergence provides a powerful combination of scaled reach, high-impact creative formats and increasingly sophisticated measurement capabilities. 

Why video continues to attract investment 

Even in a market where performance and accountability remain top priorities, brands continue to prioritise video. 

One reason is its enduring ability to build emotional connection and brand recognition at scale. Video remains one of the most effective formats for communicating brand stories and creating lasting impressions with audiences. 

At the same time, advances in data, addressability and programmatic buying mean that many video environments are now more measurable and flexible than ever before. This has helped video bridge the traditional divide between brand-building and performance marketing. 

The wider digital market context 

Video’s strong growth reflects broader trends across the digital advertising ecosystem. 

Social media investment rose by 21% to reach £11.5bn, with video accounting for the majority of that spend. Search remained the largest category overall at £17.9bn, while retail media continued its rapid expansion, growing 18% to £3.8bn. Other formats including digital out-of-home, gaming and audio also recorded double-digit growth. 

Taken together, these figures illustrate a market that is increasingly multi-channel and interconnected, with advertisers balancing performance-driven investment with formats that deliver brand impact. 

What this means for TV+ 

The digital advertising market is forecast to reach £44.7bn in 2026 and £49.1bn by 2027, and video is expected to play a central role in that growth. 

As connected and streaming environments continue to expand, the TV+ ecosystem will become an increasingly important part of the media mix. 

For advertisers, the opportunity lies in combining premium content environments with data-driven targeting, strong creative storytelling and cross-platform measurement. 

The future of television advertising will not be about choosing between TV and digital. 

It will be about bringing the strengths of both together. 
 
Check our full Adspend report here.