UK digital ad spend continues to see ‘extremely strong growth’, despite economic uncertainty
The UK’s digital advertising market is growing — although slower than usual — with a total of £13.8b spent in the first half of 2023, according to IAB UK and PwC’s half-year digital ad spend update today.
Despite ongoing economic uncertainty, a total of five per cent year-on-year growth was reported, with the most robust being an increased 11 per cent spend on video ads.
The digital growth could be attributed to the rise in short-form video content popularity, the report said, as more than a third of UK adults tune into them daily.
Jon Mew, IAB UK’s chief executive, said the results are reflective of two components: “The digital ad market isn’t immune to wider economic pressures, but also that it’s repeatedly resilient in the face of challenging circumstances.”
Despite ongoing economic uncertainty amid inflation and structural changes, Mew said although digital “spend has slowed so far” this year, the industry continues to see “extremely strong growth”.
“It’s particularly encouraging that video formats are seeing strong investment. Advertisers are increasingly harnessing the creative power of digital channels to bring campaigns to life and deliver long-term results, and we see this reflected in robust video investment,” he added.
A slow in digital ad spend isn’t completely new for the industry, as 2022 was met with similar reports.