Based on the latest projections, advertising spending in the United Kingdom is set to reach **** billion British pounds in 2022. The source further estimated that the spending would surpass ** billion pounds by 2027. Post-covid recovery The UK is one of the world’s leading advertising markets, but even so, the region’s ad industry has experienced major disruptions following the onset of the pandemic. Revenue growth slowed for the first time in many years as many companies scaled down their budgets and reduced advertising activities amid the uncertainties of the time. This weariness subsided as early as 2021 when the industry made a full financial recovery – an upward trend that was also mirrored on a global scale. Between 2020 and 2021, global ad revenue jumped from *** to over *** billion U.S. dollars and visibly surpassed pre-pandemic levels. Let’s get digital Advertisers across the UK no longer place all their bets on traditional media formats as consumers gradually turn to digital channels for information, communication, and entertainment. The internet has long overtaken television as the leading advertising medium in the UK, and based on the latest data, digital ad spending reached an all-time high of around ** billion British pounds in 2021. Television and video, for example, drew less than five billion that year. And even though there has been an uplift in spending on TV commercials in 2021, other legacy media such as print newspapers and magazines continue to attract smaller investments and brand interest each year.

Snapshot img

Digital Marketing Spending Market Size 2025-2029

The digital marketing spending market size is forecast to increase by USD 365.1 billion, at a CAGR of 8.5% between 2024 and 2029.

Major Market Trends & Insights

APAC dominated the market and accounted for a 46% growth during the forecast period.
By the Application - Mobile devices segment was valued at USD 299.90 billion in 2023
By the Type - Search ads segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 112.99 billion
Market Future Opportunities: USD 365.10 billion 
CAGR : 8.5%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving landscape, with businesses increasingly allocating significant resources to digital channels for customer engagement and brand visibility. According to recent studies, digital marketing expenditures are projected to surpass traditional marketing budgets by 2024, representing a substantial shift in marketing investments. This trend is driven by the growing importance of online presence and the increasing effectiveness of digital marketing strategies. For instance, social media advertising has seen a 10% year-on-year growth, while search engine marketing continues to dominate the digital marketing landscape with a 40% market share. Moreover, the emergence of programmatic advertising and the expansion of video marketing have added new dimensions to the market.
Despite these opportunities, challenges persist, with concerns over ad fraud and brand safety continuing to impact digital marketing investments. Nevertheless, the market's continuous evolution and the ongoing adoption of advanced technologies are expected to drive growth and innovation in the digital marketing sector.

What will be the Size of the Digital Marketing Spending Market during the forecast period?

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Digital marketing spending continues to be a significant investment for businesses, with current market performance registering at over 40% of the total advertising budget. This figure underscores the growing importance of digital channels in reaching and engaging consumers. Looking ahead, future growth expectations indicate a steady increase, with a projected expansion of over 15% yearly. A comparison of key numerical data reveals an intriguing trend. In 2020, approximately 64% of companies allocated their marketing budgets to search engine marketing, while social media marketing accounted for 22%.
By contrast, the latest statistics suggest a shift, with search engine marketing holding a 58% share and social media marketing capturing a 28% slice of the pie. This comparison underscores the evolving nature of digital marketing spending, with businesses continually reallocating resources to maximize their return on investment.

How is this Digitaling Spending Industry segmented?

The digitaling spending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Mobile devices
  Desktops


Type

  Search ads
  Display ads
  Social media
  E-mail marketing
  Others


Industries

  Retail
  E-Commerce
  Healthcare
  Financial Services
  Travel and Hospitality


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The mobile devices segment is estimated to witness significant growth during the forecast period.

In the ever-evolving digital marketing landscape, businesses continue to allocate significant resources towards various online advertising formats and strategies. Display advertising formats, such as banners and video ads, accounted for 31.1% of total digital Ad Spending in 2020. Search advertising strategies, like pay-per-click (PPC) campaigns, claimed a 41.5% share of the market. Marketing automation tools, real-time bidding strategies, and marketing technology stacks are essential components of digital marketing, with automation tools seeing a 24.4% increase in usage in 2021. Digital marketing return on investment (ROI) is a critical consideration, with businesses aiming for conversion rate optimization and affiliate marketing programs to boost revenue.

Local SEO optimization, email marketing automation, and landing page design are crucial for businesses targeting specific geographic areas or customer segments. Video marketing production, website analytics tracking, and social media advertising are also es

Advertising expenditure in the United Kingdom in 2024 amounted to **** billion British pounds, up by roughly ** percent compared to previous year. Ad spend in the country is expected to increase by *** percent in 2025 and by another *** percent a year later. Advertising expenditure by medium How is ad spending in the UK broken down by media? In 2024, nearly ** percent was spent on digital media. Traditional media with highest ad investments were TV and out-of-home. Online radio and cinema attracted lowest ad spending. What is the top advertising campaign in UK? Industry bodies look at the performance of advertising campaigns. Rankings help agencies measure the effectiveness of their campaigns as compared to their rivals. At the end of 2023, the McCann Manchester and UM Manchester lead campaign for Aldi was the most effective advertising campaign with an index score of ** points.

Concerning the ten selected segments, the segment FMCG has the largest ad spending share with ***** percent. Contrastingly, Technology & Electronics is ranked last, with **** percent. Their difference, compared to FMCG, lies at ***** percentage points. Find more statistics on other topics: a comparison of countries or regions regarding the ad spending and a comparison of the ad spending share in the Netherlands.The Statista Market Insights cover a broad range of additional markets.

Among the six presented industries, automotive was forecast to boost its digital advertising spending most in the United Kingdom (UK) in 2024. The source expected the spending to increase by ** percent on the value reported for 2023. Travel was expected to rank second, with an increase of **** percent.

Snapshot img

Online Ad Spending Market Size 2025-2029

The online ad spending market size is forecast to increase by USD 286.6 billion, at a CAGR of 11.7% between 2024 and 2029.

The market is experiencing significant shifts, with a noticeable decline in offline advertising expenditures driving more businesses towards digital channels. This trend is fueled by the increasing popularity of online video and connected TV (CTV) advertising, as consumers increasingly engage with content on digital platforms. However, this market is not without challenges. The rise of click fraud activities poses a significant threat, requiring robust fraud detection mechanisms and continuous optimization of digital ad campaigns to mitigate potential losses. Companies seeking to capitalize on the opportunities presented by this dynamic market must stay abreast of these trends and proactively address the challenges to maintain a competitive edge.
Effective strategies include investing in advanced ad fraud prevention technologies, optimizing video and CTV ad placements, and leveraging data-driven insights to create targeted and personalized campaigns. By navigating these trends and challenges, businesses can maximize their online ad spending and effectively reach their audiences in the digital realm.

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The market continues to evolve, with digital marketing strategies becoming increasingly intricate and data-driven. Entities such as website structure, voice search optimization, and search network play pivotal roles in this dynamic landscape. Artificial intelligence and machine learning are revolutionizing the way businesses approach marketing, from keyword research and content marketing to predictive analytics and decision making. Marketing technology, including SEO tools and marketing automation, enables businesses to optimize their online presence and enhance user experience. Disruptive technologies like schema markup, ad extensions, and social media advertising are reshaping consumer behavior and influencing marketing ROI. Moreover, the importance of data security and privacy in the digital age cannot be overstated.

As businesses collect and analyze vast amounts of data, data ethics and privacy policies become essential components of marketing strategies. The ongoing unfolding of market activities also encompasses the integration of marketing technology, content syndication, and SEO reporting to streamline marketing efforts and improve marketing measurement. Ad copywriting and natural language processing are crucial elements in creating engaging and effective ad campaigns. Backlink analysis and page speed optimization are essential components of SEO, while link building and conversion tracking help businesses measure the success of their digital marketing initiatives. Core web vitals and mobile optimization are vital for ensuring a seamless user experience across devices.

In the ever-evolving digital marketing landscape, businesses must stay informed and adapt to the latest trends and technologies to remain competitive. From local SEO to e-commerce SEO, marketing budgets and strategies must be agile and responsive to the continuous shifts in consumer behavior and market dynamics.

How is this Online Ad Spending Industry segmented?

The online ad spending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Platform

  Mobile devices
  Desktops


Application

  Retail and e-commerce
  Healthcare and pharma
  Media and entertainment
  Travel and hospitality
  Others


Type

  Search Ads
  Social Media Ads
  Display Ads
  Video Ads
  Others


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Platform Insights

The mobile devices segment is estimated to witness significant growth during the forecast period.

The digital advertising landscape is undergoing significant shifts, with mobile advertising emerging as a key driver of growth. The proliferation of smartphones and increasing mobile Internet usage has led to a surge in mobile advertising spend. In 2023, global smartphone shipments reached an impressive 1.17 billion units, fueling the demand for mobile ads. Major players in the smartphone market, including Samsung Electronics, Apple, Xiaomi, Oppo, and Vivo, have reported increased shipments, indicating a strong consumer preference for mobile devices. To maximize the potential of mobile advertising,

Snapshot img

Ad Spending Market Size 2025-2029

The ad spending market size is valued to increase by USD 363.8 billion, at a CAGR of 8.7% from 2024 to 2029. Increase in number of ad-exchange platforms will drive the ad spending market.

Market Insights

APAC dominated the market and accounted for a 37% growth during the 2025-2029.
By Type - Digital segment was valued at USD 356.00 billion in 2023
By segment2 - segment2_1 segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 86.96 billion 
Market Future Opportunities 2024: USD 363.80 billion
CAGR from 2024 to 2029 : 8.7%

Market Summary

The market continues to evolve, driven by the proliferation of digital channels and the increasing use of advanced technologies such as artificial intelligence (AI) and augmented reality (AR) in advertising. The rise of ad-exchange platforms has facilitated real-time bidding and programmatic advertising, enabling businesses to reach their target audiences more effectively and efficiently. However, the high cost of advertising, particularly on premium digital channels, poses a significant challenge for marketers. One real-world business scenario illustrating the importance of ad spending optimization is a retail company aiming to increase sales during the holiday season. By leveraging data analytics and AI, the company can identify its most valuable customer segments and tailor its ad campaigns accordingly. Furthermore, it can allocate its ad budget more effectively by using programmatic advertising to bid on ad inventory in real-time, ensuring that its ads are displayed to the right audience at the right time. Additionally, the integration of AR in advertising offers new opportunities for immersive and interactive experiences, allowing businesses to engage consumers in innovative ways and differentiate themselves from competitors. Despite these opportunities, the high cost of advertising and the need for compliance with data privacy regulations continue to pose challenges for marketers.

What will be the size of the Ad Spending Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free SampleThe market continues to evolve, with marketing analytics playing a pivotal role in shaping marketing strategies. Performance metrics, such as campaign performance and sales attribution, are closely monitored to optimize ad spend. Media planning and advertising technology are essential components, driving brand awareness and customer engagement. Budget allocation is a critical decision area, with data-driven marketing enabling more precise targeting and cross-channel marketing strategies. Email marketing, social media management, and search advertising are key marketing channels, each requiring unique approaches for maximum impact. Marketing technology, including marketing dashboards and data visualization tools, facilitate effective marketing ROI tracking and ad spend optimization. Affiliate marketing and lead generation are essential for customer acquisition, while creative development ensures compelling ad copy and brand messaging. By leveraging these marketing strategies and technologies, businesses can make informed decisions and allocate resources effectively in today's dynamic the market.

Unpacking the Ad Spending Market Landscape

In the dynamic realm of digital advertising, two distinct yet interconnected domains dominate market share: video advertising and search engine marketing. According to recent industry reports, video advertising accounts for approximately 30% of total digital ad spending, while search engine marketing claims a comparative 45%. This dichotomy underscores the importance of a well-rounded marketing strategy.

Behavioral targeting, a key component of campaign management, enhances media buying efficiency by up to 35% by reaching audiences with relevant ad creatives. Impression share, a critical performance metric, reveals the percentage of eligible impressions a campaign secures, emphasizing the significance of bid management and real-time bidding in programmatic advertising.

Ad platforms, such as ad exchanges and ad networks, facilitate audience segmentation and conversion optimization through various ad formats, including mobile advertising, social media advertising, and display advertising. A/B testing and keyword targeting further refine campaign performance, while cost per acquisition and cost per click ensure measurable business outcomes.

In the realm of ad creatives, quality score and conversion rate are essential indicators of ad effectiveness, with conversion rate often improving by up to 50% through optimization efforts. Performance marketing and attribution modeling enable marketers to assess the impact of various channels on overall business growth.

Marketing automation, influencer marketing, and landing pa

Over the five years through 2025-26, advertising agency revenue is expected to climb at a compound annual rate of 5.6% to £45.4 billion. Advertising agencies have benefitted from expanding advertising budgets across a variety of media. With many consumers returning to cinema, and streaming services like Netflix and Prime Video offering lower-cost plans incorporating ads, agencies are generating more revenue from cinema and video-on-demand TV advertising strategies. Economic uncertainty has accelerated demand for online advertising, viewed as a short-term boost to brand visibility and customer engagement at a lower cost than TV and cinema advertising. In spite of wavering business and consumer confidence led by tax concerns and US tariff instability, UK advertising agencies' revenue leapt by 3.8% in 2025-26. This demonstrates the growing resilience of the demand for agency services against macroeconomic issues, as businesses are reluctant to slash advertising budgets for fear of losing market share. Online and digital advertising services provided by agencies are transforming, as many businesses look to integrate AI and technological enhancements into their strategy. This has fuelled consolidation activity for the key players within the industry, who are looking to acquire tech and data companies to accelerate service innovation and customer engagement. While driving operating costs in the short run, successful consolidation will improve efficiency and service development in the advertising agency industry over time, accelerating profitability. Revenue is forecast to inch upwards at a compound annual rate of 2.1% over the five years through 2030-31 to reach £50.5 billion. The high-profile merger between Omnicom Group Inc. and Interpublic Group of Companies (IPG) set to take place in late 2025 threatens to restrict competition within the advertising agency industry. While consolidation activity and AI innovation of WPP plc and Publicis Groupe limit the potential of the mergers’ oligopoly power, smaller agencies with lower consolidation capacity are most likely to suffer as a result. The accessibility of AI tools continues to push advertising agencies to restrategise, while clients threaten to substitute agency services by developing in-house agencies using these tools.
Regulatory changes are also set to transform the advertising environment. New High-Fat, Sugar, or Salt (HFSS) restrictions on the advertising of these products may greatly restrict agencies' revenue contribution from the fast-moving consumer goods (FMCG) segment. On a wider scale, new regulations stipulated by the Data (Use and Access) Bill in June 2025 will restrict the ability of UK advertising agencies to use and collect customer data to optimise engagement, threatening the success of advertisements and therefore the revenue of agencies in the coming years.

Online advertising is booming compared with traditional forms of advertising (think TV and print), boosting demand for digital advertising agencies. Surging internet usage encourages businesses to use agencies to fortify their online presence. Many companies are splashing the cash on digital advertising channels, particularly on social media, instead of the more traditional avenues. However, rising competition from external companies (like PR companies) and the growing trend of businesses dealing directly with internet giants are squeezing growth. Revenue is forecast to balloon at a compound annual rate of 7.2% over the five years through 2024-25 to £20.4 billion, including an estimated 6.3% rise in 2024-25. Despite plummeting business confidence and spending, digital ad agencies managed to stay afloat amid the COVID-19 outbreak. Businesses, particularly retailers, wanted digital ad services to reach consumers via online channels and expand internet sales. In 2022-23, the industry was hindered by soaring inflation and economic uncertainty, squeezing business and consumer confidence and spending. As confidence in ad spending on social media platforms like TikTok and YouTube grew, revenue shot up in 2023-24. This was reflected in swelling spending on SEO and online display advertising — these climbed by 12% and 12.8% in the financial year 2023-24, respectively, according to the Q1 2024 AA/WARC expenditure report. According to the AA/WARC Q2 2024 Expenditure report, 2024-25 has started well, with SEO and online display advertising spending increasing by 12.7% and 21.6%, respectively, in the first quarter of 2024-25. Display advertising is driving industry revenue, partially due to how many consumers it can reach. According to Axonn, Google Display Network covers 90% of internet users alone. At the same time, social media sites like Facebook and LinkedIn enable you to be seen by hundreds of millions of users. Nonetheless, intense pricing pressure, fuelled by an ever-growing number of digital ad agencies and escalating external competition, restricts profit growth. Revenue is slated to climb at a compound annual rate of 8.1% over the five years through 2029-30 to £30.1 billion. The innovation undertaken by digital ad agencies will be determined mainly by how AI performs. Digital advertising leaders, like Publicis Groupe and WPP, have committed £500 million to develop and implement AI systems, increasing the scale of marketing projects and the productivity of advertising agencies.

Advertising media owners' revenue is expected to reach 39 billion British pounds in 2022, with close to 70 percent attributed to internet advertising. The next highest spending areas for advertising include television and newsbrands. However, newsbrands and magazines are the two media that have seen net adverting spend fall during measured period. Digital and social media spend Internet advertising spend accounts for close to two thirds of the total spend in the UK. Advertising via the internet allows advertisers to bring promotional content to consumers using online technologies. It includes, among others, advertisements placed on social media platforms and search engines, banner ads on desktop as well as mobile websites and promotional messages delivered via email. Growth of media spend in the UK Whether it is for the purpose of increasing sales, product awareness, increasing market share or to promote brand loyalty, the simple fact is that brands will continue to advertise to try and put themselves ahead of the competition. In 2022, the highest growth in ad spend in the UK is forecast for cinema, at over 200 percent, followed by digital out-of-home at 34 percent. In total, the industry is expected to see 10.7 percent year-on-year growth that year.

In 2023, retail companies accounted for ** percent total affiliate marketing spending in the United Kingdom (UK). Other than retail, only the telecom and travel industries made two digit shares of the spend.

The internet has become an essential part of everyday life, with consumers spending hours online and businesses using it to provide and promote services and products. Businesses therefore, spend heavily on digital advertising to reach and engage with consumers, replacing traditional channels like TV and print. Digital ad spending is surging demand for SEO and internet marketing consultants. These consultants advise businesses on enhancing their online presence, generating more online traffic and ultimately boosting sales. Industry revenue is expected to swell at a compound annual rate of 6.9% over the five years through 2024-25 to £22.3 billion, including an anticipated 7.6% hike in 2024-25. Businesses invest in Internet marketing because it's cost-effective, with social media marketing and engaging video content driving online traffic and creating a connection with consumers. The SEO and Internet Marketing industry is resilient despite recent economic challenges, like COVID-19 and the Russia-Ukraine conflict that have hurt business confidence. However, marketing consultants serve businesses in all types of sectors, limiting revenue volatility and allowing for sustained demand even in poor economic climates. A consistently budding number of UK businesses provide consultants with a grander potential client pool. Strong demand and low barriers to setting up an SEO and internet marketing consulting business have drawn a lot of new companies to the market — many of these offer lower fees to attract clients from competitors, constraining industry profit. SEO and internet marketing consulting revenue is forecast to swell at a compound annual rate of 8.5% over the five years through 2029-30 to £33.6 billion. As economic conditions continue to improve in the coming years, businesses will expand their marketing budgets. Businesses will seek to develop their online presence and outcompete rivals in the progressively competitive online marketplace, seeking expert advice on boosting traffic, exposure and conversions. Using artificial intelligence and creating video content will also help prop up the industry's improved performance as smart device usage envelops the UK. However, mounting competition could weigh on revenue and profit, with a fair few businesses taking marketing operations in-house.

In 2024, digital advertising spending in the United Kingdom (UK) increased by ** percent, reaching ** billion British pounds. During 2020, when the advertising industry was hit by the COVID-19 pandemic, the growth was estimated at *** percent.

Snapshot img

Programmatic Advertising Spending Market Size 2025-2029

The programmatic advertising spending market size is forecast to increase by USD 892.7 billion, at a CAGR of 38.1% between 2024 and 2029.

The market is experiencing significant shifts, driven by the increasing trend toward online shopping and the high penetration of augmented reality (AR) technology in the advertising sector. Consumers' preference for digital channels has led to a surge in programmatic ad spending, providing businesses with unprecedented opportunities to reach their audiences effectively. AR technology, with its ability to create immersive and interactive ad experiences, is revolutionizing the way brands engage consumers, further fueling market growth. However, the market faces challenges that necessitate strategic navigation.
The low transparency in the programmatic advertising ecosystem poses a significant obstacle for marketers, making it difficult to assess the effectiveness and value of their ad spend. Addressing this challenge through increased transparency and accountability measures will be crucial for businesses looking to optimize their programmatic advertising strategies and maximize their returns.

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Programmatic advertising spending continues to evolve, driven by the intersection of real-time data, automation, and advanced technologies. Cross-device tracking and performance measurement enable advertisers to reach consumers consistently across various touchpoints. Real-time bidding (RTB) and header bidding allow for efficient and effective campaign management, while frequency capping and demographic targeting ensure brand safety and audience segmentation. Machine learning algorithms and predictive analytics optimize ad creative and audience engagement, driving conversions. Social media advertising and private marketplaces offer new opportunities for reach and transparency. Programmatic direct and first-party data enable data-driven decision making, enhancing agile marketing strategies. Transparency and accountability remain crucial, with ad fraud detection and brand safety measures evolving to address emerging challenges.

Contextual targeting and targeting options expand reach and relevance, while supply-side platforms and ad exchanges facilitate the buying and selling of ad inventory. The programmatic landscape continues to unfold, with digital out-of-home (DOOH), native advertising, and automated optimization shaping the future of programmatic advertising. Artificial intelligence (AI) and real-time data further enhance the capabilities of programmatic platforms, enabling more effective and efficient advertising strategies.

How is this Programmatic Advertising Spending Industry segmented?

The programmatic advertising spending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Open auction
  Automated guaranteed
  Invitation-only
  Unreserved fixed-rate


Type

  Mobile
  Desktop


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

.

By Application Insights

The open auction segment is estimated to witness significant growth during the forecast period.

The market is characterized by the integration of various advanced technologies and strategies to deliver targeted and personalized ads in real-time. Cross-device tracking enables advertisers to follow consumers across multiple devices, providing a more comprehensive understanding of their behavior and preferences. Performance measurement tools help advertisers assess the effectiveness of their campaigns, while real-time data fuels real-time bidding (RTB) and automated optimization. Privacy regulations, such as GDPR and CCPA, have brought about stricter data handling practices, necessitating the use of first-party data and data-driven decision making. Demand-side platforms (DSPs) and supply-side platforms (SSPs) facilitate programmatic bidding, allowing advertisers to place bids on ad inventory in real-time.

Frequency capping, demographic targeting, and audience segmentation are crucial targeting options to ensure efficient ad delivery and minimize ad waste. Brand safety and transparency and accountability are essential considerations, with ad fraud detection and predictive analytics playing key roles in maintaining trust and confidence in the digital advertising ecosystem. Native advertising, video ad

In 2024, television advertising revenue including broadcaster video on demand (BVOD) was worth approximately *** billion British pounds in the United Kingdom (UK). 2024 inverted the general trend of negative growth visible since 2017, recording a positive growth rate of nearly **** percent. The growth recorded in 2021 was a reaction of advertisers to the disappearance of corona-related constraints. Ad industry has recovered from COVID-19 shock The impact of the pandemic was clearly visible in advertising revenues of most media still in 2021. By 2022, most ad channels had recovered, and the growth rates went back to their pre-COVID-19 trajectories. In 2024, out-of-home media were the fastest growing traditional ad medium in the UK, whereas among digital formats, video-on-demand is recorded the highest growth rate. Advertising agencies Advertising agencies are in charge of taking an aim or idea of a client and creating a campaign. With the growth in digital advertising spending and multi-platform campaigns, advertising agencies have had to evolve rapidly with the times. Market data show that Mindshare (part of WPP), was the leading agency in the UK in 2024, with new business value of *** million U.S. dollars.

During a summer 2024 survey carried out among in-house and agency marketers from France, Germany, Italy, Spain, and the United Kingdom, 48 percent of respondents stated that they expected their marketing spending to remain the same in the coming 12 months while 25 percent expected the expenditure would increase. However, roughly one in three said they expected a marketing budget cut.

Snapshot img

Digital Video Advertising Market Size 2025-2029

The digital video advertising market size is forecast to increase by USD 636.3 billion at a CAGR of 44.8% between 2024 and 2029.

The market is experiencing significant growth, fueled by the increasing popularity of in-app advertising and the rising spending on online video and Connected Television (CTV) advertising. However, this market faces challenges as well. The growing use of advertisement blocking solutions poses a significant obstacle, with consumers increasingly adopting ad-blockers to avoid intrusive ads. GDPR and CCPA compliance safeguard consumer privacy, while conversion rate and mid-roll ads drive sales.
Advertisers must navigate this challenge by implementing non-intrusive ad formats and focusing on delivering value to consumers. To capitalize on the market's opportunities, companies must stay abreast of the latest trends and consumer preferences, while also addressing the challenges to effectively engage audiences and maximize ROI. This trend is driven by the increasing consumption of digital content on mobile devices and smart TVs, providing advertisers with a vast audience base.

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The market continues to evolve, with private marketplaces (PMPs) gaining traction as brands seek more control over their video content strategy and improved user experience (UX). Brand safety and ad quality scores are paramount, driving the demand for advanced competitive analysis tools. Influencer marketing and call-to-actions (CTAs) are essential components of effective video ad campaigns, with landing page optimization and programmatic guaranteed deals further enhancing campaign performance.

Video content production and viewability measurement are crucial aspects of video analytics dashboards, enabling businesses to optimize their social video advertising efforts in the open auction environment. Video ad spend is projected to increase significantly, fueled by the growing popularity of video content distribution across various platforms. New technologies, such as smart radio and voice over IP, are enabling seamless communication between terrestrial users and mobile radios, leading to increased interoperability and range accessibility.

How is this Digital Video Advertising Industry segmented?

The digital video advertising industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Retail
  Consumer goods and electronics
  Media and entertainment
  Automotive
  Others


Type

  Desktop
  Mobile


Service Type

  In-Stream video ads
  Out-Stream video ads
  Linear video ads
  Nonlinear video ads
  Others


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By End-user Insights

The Retail segment is estimated to witness significant growth during the forecast period. In the dynamic the market, various entities play pivotal roles in delivering effective and engaging campaigns for businesses. Marketers and brands leverage video ad serving to deliver skippable ads, ensuring a better user experience. Demand-side platforms (DSPs) facilitate real-time bidding (RTB) and frequency capping, optimizing ad delivery and preventing ad overexposure. Dynamic ad insertion and out-stream video ads expand reach, while ad fraud detection and verification maintain transparency and trust. Native video ads blend seamlessly with content, and programmatic advertising streamlines the buying process. Completion rate and click-through rate (CTR) are essential metrics, with over-the-top (OTT) ads and in-stream video ads catering to diverse audience preferences.

Brands invest in ad creative production and A/B testing for optimal campaign performance. Behavioral targeting, contextual targeting, and demographic targeting refine audience reach. Inventory management, creative optimization, and cross-device tracking ensure efficient ad delivery across platforms. Ad exchanges and header bidding enable competition among multiple buyers, driving up yields. Unskippable ads and interactive video ads capture user attention, while personalized video ads build stronger connections. Technological advancements, such as video player technology and attribution modeling, enhance the overall effectiveness of digital video advertising. Battery life concerns on smartphones have led consumers to seek out radio apps and music streaming platforms, which offer uninterrupted access to their

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The global digital ad spending market size is set to increase from USD 601.64 billion in 2024 to USD 1491 billion by 2034, with a projected CAGR exceeding 9.5% from 2025 to 2034. Top companies in the industry include Microsoft Corp., Google LLC, Facebook, Twitter, Amazon, Alphabet, Meta Platforms, Effective Spend, Omnicom Group, and Power Digital Marketing..

The ad spending in the 'Influencer Advertising' segment of the advertising market in the United Kingdom was modeled to be 1.17 billion U.S. dollars in 2024. Following a continuous upward trend, the ad spending has risen by 1.02 billion U.S. dollars since 2017. Between 2024 and 2030, the ad spending will rise by 668.95 million U.S. dollars, continuing its consistent upward trajectory.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Influencer Advertising.