UK’s overall digital ad market hits £35.5bn as video spend jumps 20% YoY 

• The UK’s total digital ad market grew 13% year-on-year in 2024, according to IAB UK’s latest Digital Adspend report
   
• Investment in video display outpaced total market growth, up 20% to £8.3bn, as advertisers continued to seek out high-impact formats to capture audiences’ attention
   
• IAB UK forecasts that total digital ad spend will grow 7% in 2025 to reach £38bn

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.”

The UK’s digital ad market surpassed £35bn in spend last year, growing by 13% - a far faster rate than overall GDP which stood at 1.1% - according to IAB UK’s latest Digital Adspend report, conducted with MediaSense. 

The data shows that advertisers doubled down on the content-rich possibilities offered by video display ads - spanning social channels, publishers, outstream, AVOD and BVOD - with 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

For more information, please contact:

Jessie Sampson

Head of Communications 

E: [email protected]    

T: 07917 831 694

Notes to editors

Digital Adspend 2024 is conducted by IAB UK and MediaSense and is based on both data submitted to IAB and MediaSense and modelled spend data for the digital advertising industry between January and December 2024.

Digital display video: advertisers’ spend on video formats across social channels, publishers, outstream, AVOD and BVOD. 

Digital retail media: advertisers’ spend directly with UK-based retailers using retailers’ first-party data, for native and in-feed ads on retailers’ own websites and apps.

Gaming: advertisers’ spend on display formats within game play across devices 

CTV: In 2023, IAB UK and MediaSense (then PwC) amended the CTV definition from a channel format to a device, to better reflect how CTV is used by consumers and advertisers. This allows for all video ads, as well as non-video CTV to be included in revenue figures. Non-video spend includes standard and other display formats.

About IAB UK

The Internet Advertising Bureau (IAB UK) is the industry body for digital advertising, committed to building a better future for digital advertising, for the benefit of everyone. We do this by bringing the industry together - with members including media owners, agencies, ad tech and brands - to solve shared challenges, demonstrate how great advertising drives growth, and look ahead to help businesses prepare for the future.

About MediaSense

MediaSense are independent global media advisors. We build high performance media operating models and unlock value for the world’s leading brands.

Engineering Value. Navigating Change. MediaSense Operates in Three Strategic Areas: Models / Partners  / Analytics. www.media-sense.com