During an early 2023 survey among marketing leaders in the United Kingdom, respondents from consumer packaged goods companies reported that, on average, more than 20 percent of their companies' budgets were allocated to marketing expenses. Banking, finance, and insurance companies followed with roughly 20 percent.

Based on the latest projections, advertising spending in the United Kingdom is set to reach 39.4 billion British pounds in 2022. The source further estimated that the spending would surpass 48 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 621 to over 772 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 28 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.

The quarterly report evaluating the changes in marketing budgets in the United Kingdom shows that in the third quarter of 2024 a net balance of 9.7 percent of marketers in the country recorded an increase in their direct marketing budgets. The largest increase was recorded in the sector of public relations (PR).

Advertising expenditure in the United Kingdom in 2023 amounted to 36.62 billion British pounds, up by roughly six percent compared to previous year. Ad spend in the country is expected to increase by six percent in 2024 and by another 4.5 percent a year later.

Advertising expenditure by medium

How is ad spending in the UK broken down by media? In 2022, nearly 80 percent was spent on digital pure.play media. The next highest spending areas for advertising include video (including TV) and newsbrands. Cinema advertising accounts for the smallest share, at 0.5 percent.

What is the top advertising campaign in UK?

The WARC effective 100 rankings looks at the performance of advertising campaigns. The index helps agencies measure the effectiveness of their campaigns as compared to their rivals. At the end of 2022, the McCann Manchester and UM Manchester lead campaign for Aldi was the most effective advertising campaign with an index score of 43 points.

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 22 percent on the value reported for 2023. Travel was expected to rank second, with an increase of 15.5 percent.

Concerning the ten selected segments, the segment FMCG has the largest ad spending share with 16.38 percent. Contrastingly, Technology & Electronics is ranked last, with 3.11 percent. Their difference, compared to FMCG, lies at 13.27 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.

The ad spending in the 'Video Advertising' segment of the digital advertising market in the United Kingdom was forecast to continuously increase between 2023 and 2028 by in total 1.5 billion U.S. dollars (+16.5 percent). After the ninth consecutive increasing year, the indicator is estimated to reach 10.61 billion U.S. dollars and therefore a new peak in 2028. Notably, the ad spending of the 'Video Advertising' segment of the digital advertising market was continuously increasing over the past years.Find other key market indicators concerning the average ad spending per internet user (ARPU) and revenue growth. The Statista Market Insights cover a broad range of additional markets.

The ad spending in the 'Influencer Advertising' segment of the advertising market in the United Kingdom was forecast to continuously increase between 2024 and 2030 by in total 526.2 million GBP (£) (+57.41 percent). After the eleventh consecutive increasing year, the ad spending is estimated to reach 1.4 billion GBP (£) and therefore a new peak in 2030. Notably, the ad spending of the 'Influencer Advertising' segment of the advertising market was continuously increasing over the past years.Find further information concerning the average ad spending per internet user in the 'Digital video ads' segment of the advertising market in Australia and the ad spending in the 'Social Media Advertising' segment of the advertising market in the Netherlands. The Statista Market Insights cover a broad range of additional markets.

In 2023, digital advertising spending in the United Kingdom (UK) amounted to 29.6 billion British pounds. This figure marked a boost of 11 percent compared to the previous year while also representing the highest online ad expenditure to date.

Digital advertising is thriving in the UK

According to the latest reports, total advertising spending in the UK stood at roughly 24 billion British pounds in 2021. Investments in digital channels and formats accounted for the lion's share of that sum, outperforming spending on TV, radio, and all other traditional media formats by a landslide. Advertisers have long realized the immense potential that the internet can have for marketing purposes, as the demand for digital content has never been higher. Millions of people across the UK browse the web for information and inspiration each day, looking for new brands to follow or products to try. In 2021, search remained the top digital ad format in the UK and many other regional markets, drawing an estimated 5.5 billion British pounds in investments in the first half of the year alone.

The UK sets the tone for digital advertising in Europe

The United Kingdom is the largest digital ad market in Europe. In 2021, the UK's digital ad spend was higher than that of the four next largest markets combined. But not only advertisers in the UK have come to embrace their digital future. Data showed that total digital advertising spending in Europe jumped from 70.5 to 92 billion euros in 2021. While the UK was undoubtedly the engine that fueled parts of this growth, smaller digital ad markets also pulled their weight. In Poland, for example, more than 40 percent of all advertising expenses were allocated towards digital in 2021, up by an estimated 10 percent. By comparison, the share stood at 15 percent just a decade earlier.

In 2021, retail was forecast to be the industry with highest digital advertising spending in the United Kingdom. Its digital ad spend was projected to amount to 3.33 billion British pounds. Consumer packaged goods (CPG) and consumer products ranked second, with a spend of 2.22 billion. Total digital ad expenditure in the UK in 2021 was expected to amount to billion 17.34 billion pounds.

The ad spending in the 'Search Advertising' segment of the digital advertising market in the United Kingdom was forecast to continuously increase between 2023 and 2028 by in total 9.7 billion U.S. dollars (+45.22 percent). After the ninth consecutive increasing year, the indicator is estimated to reach 31.19 billion U.S. dollars and therefore a new peak in 2028. Notably, the ad spending of the 'Search Advertising' segment of the digital advertising market was continuously increasing over the past years.Find other key market indicators concerning the average ad spending per internet user (ARPU) and revenue growth. The Statista Market Insights cover a broad range of additional markets.

During a January 2022 survey carried out among marketing leaders from the United Kingdom (UK), it was found that digital marketing spending in for-profit companies was expected to increase by 28.29 percent for the following 12 months, as compared to the full year prior.

In 2023, retail companies accounted for 48 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 United States was by far the United Kingdom's most important export trading partner of advertising and market research services in 2023, with an export value of 3.4 billion British pounds. Second most important export trading partner was Germany, with exports amounting to 1.2 billion pounds.

In 2023, digital advertising spending in the United Kingdom (UK) increased by 11 percent, reaching nearly 30 billion British pounds. During 2020, when the advertising industry was hit by the COVID-19 pandemic, the growth was estimated at 5.2 percent.

Over the last two observations, the ad spending is forecast to significantly increase in all segments. Particularly striking is the exceptionally strong increase of the segment Search Advertising towards the end of the forecast period. The value amounting to two billion U.S. dollars stands out significantly from the average changes, which are estimated at 0.6775 billion U.S. dollars. Find other insights concerning similar markets and segments, such as a comparison of revenue in the United Kingdom and a comparison of ad spending in the United States. The Statista Market Insights cover a broad range of additional markets.

In 2023, the United Kingdom (UK) was the largest digital advertising market in Europe, with a spend of 34.01 billion euros. Germany ranked second with an expenditure of 13.42 billion euros.

Bright future for digital marketing

A glance at digital advertising spend in the UK from 2007 to 2019 shows a steady year by year increase. Roughly 2.8 billion British pounds was spent on online advertising in 2007. This had increased five-fold by 2019 to 14 billion British pounds, and was projected to reach 15.6 billion British pounds by 2020, reflecting not only an ever increasing but continual shift towards digital marketing. According to Statista’s Digital Market Outlook, mobile advertising is expected to grow by a year-over-year average of three percent between 2020 and 2024. Relative to this, desktop advertising is projected to drop by roughly the same amount each year during this period.

Growth of mobile advertising

With 95 percent of households in the United Kingdom citing having at least one mobile phone, it is no wonder that marketers are seizing the opportunity to reach their audience through mobile advertisements such as banners, push notifications and text messages. Unlike desktops, the average person has their mobile phone constantly on hand, using it to access the internet continually throughout the day. As of January 2020, Apple’s Safari was the leading browser in the United Kingdom with a 47.66 percent market share. This was followed by Google’s Chrome with 41.15 percent.

In 2023, entertainment and leisure was the industry with the highest out-of-home (OOH) advertising spending in the United Kingdom (UK), with a share of 28.6 percent. Food ranked second, with a share of 11.6 percent.

During a survey held from January 10 to February 1, 2023, responding marketing leaders from the energy industry in the United Kingdom (UK) reported, on average, roughly a 30 percent increase in their digital marketing spending. Respondents from mining and construction firms reported a 25 percent increase.

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.