Encouraging signs for the UK digital ad market

EU UK FlagStefan Rousseau / PA Wire/Press Association Images

 

 

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UK digital ad spend grew by 16.4% – the highest year-over-year (YoY) rate of growth since 2008 – to eclipse $12.2 billion in 2015, according to new IAB UK report conducted by PricewaterhouseCoopers. 

 

Display ad spend shows no sign of slowing despite ad block concerns. Although, 22% of the UK’s internet users are ad blockers, according to a recent IAB UK study, display ad spend was up 24.5% YoY, reaching $4.2 billion in 2015.  

 

Digital ad spend growth is being propelled by mobile. Mobile spending grew 60% YoY to reach $3.7 billion in 2015. This accounted for nearly one-third of total digital ad expenditure in 2015.

 

Social and video also exhibited strong growth. Spending on video ads was up 51% and social media ad spend increased 45% YoY. Social spending in particular is becoming increasingly mobile: 71% of brands’ social ad spend went to mobile last year.  

 

The bulk of display ads are now traded programmatically. 60% of desktop display ads were sold programmatically, up considerably from 47% in 2014. Meanwhile, mobile display and mobile video grew most substantially in terms of programmatic ad spend, with 73% and 72% YoY growth, respectively. 

 

 

Dollars are increasingly flowing from traditional ads to digital, as strong growth in mobile, video, and social spending continue to change the face of the US media market.

 

Over the next five years, marketers will especially embrace mobile. Mobile will drive up spending on video, search, display, and social, and propel the migration of ad dollars away from traditional media, including newspapers and magazines.

 

BI Intelligence, Business Insider’s premium research service, has compiled a detailed report that forecasts spending trends for the major digital ad formats – including search, display, and video – and mobile vs. desktop. It also examines trajectories for social ad spending and programmatic ad buying, which cut across digital formats. Finally, the report looks at how spending on traditional media formats will grow or contract over the next five years, as digital, and particularly mobile, rises.

 

Digital Media Ad Spend Report CoverStefan Rousseau / PA Wire/Press Association Images

 

Here are some of the key takeaways from the report:

 
 
    • Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR through of 2020.
 
    • Digital video ad spending is rising faster than search and display. US digital video ad revenue will rise by a CAGR of 21.9% through 2020.
 
    • Mobile search will overtake desktop search ad revenue by 2019. Mobile search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue will decline during the same period.
 
    • Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017.
 
    • Social media ads, which cut across display and video, are seeing fast adoption. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9% through 2020.
 
    • The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year.
 
    • Unlike digital, traditional ad revenue will remain flat overall through 2020. Total traditional ad revenue will rise by a CAGR of just 0.4% between 2015 and 2020.
 
 

In full, the report:

 
 
    • Forecasts ad revenue for emerging digital ad channels and formats like mobile, video, social and programmatic over the next five years
 
    • Explores why ad revenue is flowing from desktop to mobile
 
    • Examines the stagnation of traditional advertising channels like TV, magazines, and newspapers
 
 

 

To get your copy of this invaluable guide, choose one of these options:

 
 
    1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
 
    1. Purchase the report and download it immediately from our research store. >> BUY THE REPORT
 
 

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the digital media advertising.

 

 

 

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