April 26, 2018 / by Derayo
Since its start in 1997 the IAB, in conjunction with PriceWaterhouseCoopers (PWC) have measured the size the digital advertising industry with in the UK and this one marked the 21st edition.
The UK digital market continues to grow
2017 proved to be another hyper-growth year for the UK digital advertising industry, worth an estimated £11.55 billion. This is a 1.44 billion increase from 2016, equating to a 14.3% increase.
Smartphone is fuelling growth
It’s been well documented that smartphones are driving the growth of the digital economy of the last decade. 2017 proved to be no different with 45% of all digital advertising displayed on smartphone devices; an 8% increase from the previous year – this makes sense as comScore’s recent research found that the UK’s time spend online is 70% on mobile.
According the IAB & PwC the total smartphone market is believed to be £5.20 billion and that 45% of all digital advertising is on a smartphone.
Online video is the largest display format
The display advertising market is worth £4.18 billion and 61% of it is distributed on smartphone devices. Video advertising has the largest share of the display market totalling £1,609 million which is 39% of the share. This year saw 47% increase from last year for video advertising, which makes video the fastest growing display format for the last 5 years.
For the first time outstream / native video has overtaken pre-roll as the largest video format with 56% of the market share worth an estimated £900 million, showing that the market is coming to terms with more innovative formats. Clearly there’s an appetite for different video formats, which is why LoopMe offers all forms of mobile video, including native, pre-roll, vertical and 360.
Stephen Upstone, CEO & Co-founder of LoopMe commented:
“The growth in in the UK digital economy, especially the surge in display advertising, is an indicator that the market is continuing to think mobile first. We also encourage mobile marketers to think not just about the formats available but the metrics they’re using to measure success.”
Click here to download the full report from the IAB