UK Digital Advertising Market

UK Digital Advertising Market Overview:

The UK digital advertising market size reached USD 39.28 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 62.53 Billion by 2032, exhibiting a growth rate (CAGR) of 4.80% during 2024-2032. A considerable reliance on high-speed internet connection and smartphones, increasing focus on programmatic advertising and the integration of artificial intelligence (AI) technologies, and the expansion of video advertising, particularly through connected TV (CTV), are some of the factors impelling the growth of the market.

UK Digital Advertising Market Trends:

Increased Mobile Internet Penetration and Smartphone Usage

A considerable reliance on high-speed internet connection, which is transforming how brands are targeting customers, is supporting the growth of the market in the UK. As per the UK mobile phone statistics, 2024 by Uswitch, more than nine in ten (92%) UK mobile users owned a smartphone in 2023. An increasing number of people are using these devices for shopping, social media, and content consumption. The extensive use of mobile devices is making advertisers shift their focus toward mobile-friendly campaigns, optimizing advertisements for smaller screens, and integrating with apps and mobile-optimized websites. Moreover, mobile ad spending and usage of artificial intelligence (AI)-powered ad platforms in the UK are increasing rapidly. New products, such as AI-powered ad platform named OSSA, are also enabling small businesses in the UK to improve their operations and attract new customers.

Growth of Programmatic Advertising and AI Integration

Programmatic advertising and the integration of AI technologies are revolutionizing how digital ads are bought and sold in the UK. By 2023, programmatic ad spending in the UK reached roughly £30.6 billion, as per the UK Programmatic Advertising Spending & Trends in 2024 by Silverpush, reflecting a growing reliance on automation and machine learning (ML) to deliver personalized and targeted advertisements. AI algorithms are now capable of processing vast amounts of consumer data, enabling brands to create hyper-personalized ads based on user behavior, location, and interests in real-time. In 2024, Circana launched Liquid Data Go to support small and medium-sized enterprises (SMEs) to compete in the market via presenting market and business performance data. This is significantly streamlining the process of allowing businesses to achieve better returns on investment (ROI) by minimizing waste in ad spend.

Expansion of Video Advertising and Connected TV (CTV)

The expansion of video advertising, particularly through connected TV (CTV), is bolstering the market growth in the UK. As streaming dominate viewership, advertisers are increasingly investing in video formats that can be delivered across these platforms. A 2023 report by IAB UK indicated that CTV spending is likely to increase and become almost double by 2028. This shift is driven by the growing trend of cord-cutting, where traditional TV viewers are migrating to digital platforms. Advertisers are also launching interactive video ads to engage viewers more dynamically. For instance, Sky launched its contextual targeting ads and beef up the viewing panel along with several other updates to ad formats at its upfronts in London in 2023. This personalized approach enhances viewer engagement and increases conversion rates, positioning video as a central pillar of digital advertising strategies going forward.

UK Digital Advertising Market News:

• October 2023: News UK launched Nucleus Plan, an industry appropriate UK publisher planning tool that uses real time first party data, empowering advertisers to provide better addressability and granularity for their campaigns. The tool will facilitate advertisers in optimizing their campaigns as per up to six key KPIs, which align with their objectives of CTR, viewability, consideration, brand awareness, purchase intent and attention.
• April 2024: AI-powered ad platform OSSA launched in the UK for supporting small business growth. It enables business owners to create and publish digital campaigns with convenience and ease.

UK Digital Advertising Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2024-2032. Our report has categorized the market based on platform, format, offering, type, and end-user.

Platform Insights:

• Computer
• Smartphone
• Others
   

The report has provided a detailed breakup and analysis of the market based on the platform. This includes computer, smartphone, and others.

Format Insights:

• Text
• Image
• Video
• Others
   

A detailed breakup and analysis of the market based on the format have also been provided in the report. This includes text, image, video, and others.

Offering Insights:

• Solution
• Services
   

The report has provided a detailed breakup and analysis of the market based on the offering. This includes solution and services.

Type Insights:

• Search Advertising
• Banner Advertising
• Video Advertising
• Social Media Advertising
• Native Advertising
• Interstitial Advertising
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes search advertising, banner advertising, video advertising, social media advertising, native advertising, and interstitial advertising.

End-User Insights:

• BFSI
• Automotive
• IT & Telecommunication
• Healthcare
• Consumer Electronics
• Digital Advertising
• Media & Entertainment
• Education
• Others
   

The report has provided a detailed breakup and analysis of the market based on the end-user. This includes BFSI, automotive, it & telecommunication, healthcare, consumer electronics, digital advertising, media & entertainment, education, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Digital Advertising Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK digital advertising market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK digital advertising market?
• What is the breakup of the UK digital advertising market on the basis of platform?
• What is the breakup of the UK digital advertising market on the basis of format?
• What is the breakup of the UK digital advertising market on the basis of offering?
• What is the breakup of the UK digital advertising market on the basis of type?
• What is the breakup of the UK digital advertising market on the basis of end-user?
• What are the various stages in the value chain of the UK digital advertising market? 
• What are the key driving factors and challenges in the UK digital advertising?
• What is the structure of the UK digital advertising market and who are the key players?
• What is the degree of competition in the UK digital advertising market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK digital advertising market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK digital advertising market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK digital advertising industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.