Advertisers are seeking out digital ad formats that capitalise on the engagement offered by the rich array of entertainment online, according to the results of the IAB’s Digital Adspend report conducted with PwC.
Spend on podcast ads grew by 23% year-on-year, while connected TV (CTV) was up 21% and social video continued to perform strongly with annual growth of 20%. Growth rates in all three categories outperformed the digital ad market as a whole – underscoring the appeal of these channels, which stand to be more immune to upcoming cookie changes than other forms of digital advertising.
Overall, the UK digital ad market experienced solid growth of 11% to £29.6bn last year. Key takeouts from the report include the continued growth of digital retail media spend, up 12% to £283m, as the sector becomes a popular route for advertisers looking to tap into retailers’ wealth of first-party data
Digital out-of-home was included within the report for the first time, showing that the market grew 12% in 2023 to £841m.
Search continues to underpin the industry, accounting for 50% of the market at £14.7bn. Display grew 12% to £11.3bn, fuelled by video, which accounted for over 60% of total display spend for the first time.
James Chandler, CMO at IAB UK, commented: “As well as providing us with invaluable insight on the health of the digital ad market as a whole, the latest Adspend results show how advertisers are embracing the diverse array of digital channels on offer. Media that is often referred to as ‘emerging’ are taking their place as increasingly established ways to resonate with engaged audiences – whether that’s via the immersive nature of podcasts or high-impact fame factor of CTV.
“With the impending deprecation of third-party cookies, digital advertising is undergoing a shift, and we know that the year ahead will reshape the industry in new ways. In that context, it’s encouraging to see advertisers seeking out engaged environments and increasingly investing in a broad array of online solutions.”
