The UK’s digital advertising market continued its robust upward trajectory in 2024, reaching a record-breaking £35.5 billion, according to the latest Digital Adspend Report by IAB UK.
Marking a 13% year-on-year increase, the sector’s growth significantly outpaced the United Kingdom’s overall GDP growth of just 1.1%, highlighting the increasing centrality of digital media in modern consumer and brand ecosystems.
Video Takes Centre Stage in the Digital Arena
A key driver behind this expansion was video advertising, which saw a dramatic 20% year-on-year uplift, reaching £8.3 billion in spend.
This category now accounts for a commanding 64% of all online display spend, up from 51% just five years ago, encompassing formats across social media platforms, digital publishers, outstream placements, AVOD (Ad-Supported Video on Demand), and BVOD (Broadcaster Video on Demand).
The shift reflects the evolution in consumer viewing habits. Research from GWI confirms that every age group under 55 now spends more time watching digital video content than traditional linear TV – a seismic change reshaping media consumption.
As the CEO of IAB UK stated, whether you’re watching a podcast on your phone or streaming YouTube on the TV, media consumption is becoming increasingly video-centric – and that’s influencing where advertisers are choosing to invest.
Digital video not only aligns with engaging content but also offers brands a powerful canvas to craft compelling storytelling and memorable brand moments.
Search Remains the Titan of Digital Spend
Despite video’s meteoric rise, search advertising held firm as the dominant format, accounting for 47% of total digital ad spend. The channel also enjoyed a 13% year-on-year growth, matching the market average and closing 2024 at £16.6 billion in total spend.
Search’s reliability and conversion-focused nature continue to cement its role as the bedrock of many brands’ digital strategies.
Looking Ahead: Cautious Optimism for 2025
In partnership with MediaSense, IAB UK’s report also casts an eye to the near future. While the outlook remains positive, it projects a more modest growth of 7% in 2025, with the market expected to reach £38 billion.
This tempered forecast accounts for growing economic pressures and a potential slowdown in marketing budgets as brands approach 2025 with greater caution.
TV Advertising Finds New Momentum
Adding a complementary perspective, the CEO of Thinkbox, the UK’s marketing body for TV, welcomed the digital boom as part of a wider resurgence in TV advertising.
They expressed that it’s great to see this return to growth for TV advertising in the UK. It speaks to the medium’s ongoing evolution and its proven effectiveness. Especially in uncertain times, TV remains one of the safest places for a brand to be – delivering consistency, trust, and scale.
Conclusion: A Dynamic Market, A Shifting Landscape
2024 was a milestone year for UK digital advertising. With video now the dominant force in online display and search maintaining its strategic grip, the industry is adapting at speed to new technologies and audience behaviours.
While forecasts suggest a slight cooling in 2025, the foundations remain strong – powered by a consumer base that’s more screen-connected than ever and an advertiser ecosystem eager to meet them where they are.
As the boundaries between media formats blur and digital innovation accelerates, one thing is clear: advertising in the UK is firmly in its video era – and there’s no looking back.
