The UK’s digital advertising market is on a strong upward path. Forecasts show digital ad spend rising by 10% this year and next, expected to reach £45 billion by 2026.

This growth reflects the trust businesses have in digital channels to connect with customers. For marketers and business owners, understanding spend trends is key to making the most of their budgets.

Key Numbers

In the first half of this year, UK digital ad spend hit £18.7 billion. The stand-out channels were search, which attracted £8.3 billion (44% of spend), and video, with £4.3 billion (23%). Search remains essential for brands wanting to appear when customers are searching for products or services, while video continues to prove its value for storytelling and audience engagement.

Search and video now make up more than two-thirds of digital ad spend, showing the clear focus on results-driven channels.

Drivers of Growth

Several trends are behind this rise in digital advertising:

• E-commerce Growth: As online shopping grows, more ad budgets are channelled into digital platforms that drive direct sales and performance.

• Video’s Popularity: Videos on platforms like TikTok, Instagram, and YouTube are everywhere, making video advertising a powerful tool for brand awareness and engagement.

• Data-Driven Marketing: Digital ads let brands track campaigns with precision, gain real-time insights, and make quick improvements. This focus on ROI makes digital spend an easy decision for businesses.

Implications for Your Business

Rising digital ad spend means a more competitive online market. It’s important to invest in high-impact channels:

• Search: Go beyond ads; optimise your website and run targeted PPC campaigns so customers find you when they need to.

• Video: Create platform-specific, engaging content that tells your story and builds brand trust.

A successful digital strategy connects these channels with the rest of your marketing; email, social media, and content marketing, to guide customers from first contact to loyal fan.

Looking Ahead

Digital advertising will keep evolving. New technologies like AI will help automate campaigns and personalise experiences even further, while integration with CRMs will give a complete view of each customer.

Embracing these trends keeps your brand competitive, making every pound of your marketing budget count.