The UK’s digital ad market hit £35.5 billion in 2024, growing by 13% year-on-year and considerably outstripping overall GDP growth, which stood at 1.1%.
Revealed in the IAB UK’s latest Digital Adspend Report, the promising growth figures were boosted by a strong performance in video, which saw spend grow by 20% year-on-year to £8.3 billion.
Including a diverse array of formats such as social channels, publishing, outstream, AVOD and BVOD, the IAB estimates that 64% of all online display spend is now invested in video, up from 51% five years ago.
This rapid growth reflects a continuing shift in consumer habits, with all age groups under 55 now spending more hours per week watching digital video than traditional linear TV, according to GWI.
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“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”, said Jon Mew, IAB UK CEO.
“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.”
Although the majority of growth came from display formats, search maintained its market dominance – making up 47% of all digital ad spend in 2024, growing by 13% year-on-year to hit £16.6 billion.
Conducted in partnership with MediaSense, the industry body’s report does however expect a weaker performance across the board in 2025, at this stage predicting growth of 7% to £38 billion.
