UK Digital Advertising Spend: 2024 Market Analysis & 2026 Forecast
In 2024, the United Kingdom’s total advertising market reached a record-breaking £42.6 billion, marking a substantial 10.4 percent increase compared to the previous year. Digital formats drove this acceleration, now accounting for £4 in every £5 of all advertising expenditure.
Digital Formats Dominate the Sector
Digital channels are expanding faster than traditional media, cementing the UK’s position as the leader in the European advertising sector. Search advertising grew by 12.8 percent in 2024, reaching a total of £16.9 billion, remaining the largest single category for investment.
Online display advertising also recorded gains, rising by 15.1 percent year-on-year. Within this category, social media drove the momentum, accounting for 53 percent of all online display spend. Retail media has appeared as the fastest-expanding segment, registering a 22.7 percent growth rate in 2024 as brands invest in E-commerce platforms to reach consumers directly. The latest Advertising Association/WARC Expenditure Report confirms these record-breaking figures.
Social Media and Influencer Investment
The “Digital 2026” report provides specific insights into how brands allocate budgets across platforms. social media advertising spend in the UK climbed by 12.6 percent year-on-year to reach £9.77 billion ($12.8 billion).
Influencer marketing also saw double-digit growth, rising by 12 percent to exceed £1 billion ($1.31 billion) for the first time. This shift aligns with consumer behavior, as nearly half of UK internet users now use social networks to research products. Reports indicate social ad spend climbed over 12% in the last year.
Platform Performance and Audience Trends
While spend increases, audience dynamics are shifting. Reddit is outperforming competitors in quarterly momentum, with Reddit increasing its advertising audience reach by 4.6%. LinkedIn also reported positive results with 2.1% growth, representing an additional 1 million users, while YouTube followed with a 2% increase (1.1 million).
In contrast, X (formerly Twitter) saw its ad audience reach decline by 6.7%, resulting in a loss of approximately 1.36 million users from the previous quarter.
Engagement and Usage Habits
User attention spans vary significantly by application:
- Session Duration: YouTube commands the highest level of attention, with average sessions lasting 10 minutes and 20 seconds. TikTok follows at 7 minutes and 39 seconds.
- Daily Time on Android: TikTok leads in total daily usage, capturing 1 hour and 14 minutes of user time each day. YouTube ranks second with 1 hour.
- Frequency: WhatsApp remains the most frequently opened app (17.5 times per day), followed by Snapchat (11.6 times) and Instagram (11.1 times).
- Referrals: Facebook drives the majority of web traffic referrals from social media, holding a 69.04% share-a 15% year-on-year increase.
Future Outlook: 2025 and 2026
The outlook for the coming years remains positive. Analysts project that total UK advertising spend will rise by another 6.3 per cent in 2025, reaching an estimated £45.2 billion. Digital channels are set to account for 82% of the total advertising spend in 2025.
Longer-term projections suggest the market will grow by 5.6 per cent in 2026, pushing the total value to £47.8 billion. Industry forecasts predict the UK ad market will reach £47.8bn by 2026.
Alongside financial growth, technological adoption is reshaping the user experience. Approximately 21.8% of adult internet users now engage with AI tools like ChatGPT monthly, while 18.5% utilize image search tools such as Google Lens or Pinterest Lens.
My Answers to your Questions
How much is spent on digital advertising in the UK?
In 2024, the total UK advertising market was worth £42.6 billion, with digital formats accounting for approximately 80% of this total.
Which digital ad format is growing the fastest?
Retail media is currently the fastest-growing segment, expanding by 22.7% in 2024, while Search remains the largest format by total value.
What is the forecast for UK ad spend in 2025?
The Advertising Association and WARC forecast that UK ad spend will grow by 6.3% to reach £45.2 billion in 2025.
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