Digital adspend growing at fastest rate for seven years

Digital adspend is growing at its fastest rate for seven years, according to the latest figures compiled by the Internet Advertising Bureau.

The average UK household now has 8.3 internet-ready devices, said the IAB research
The average UK household now has 8.3 internet-ready devices, said the IAB research

In the UK, digital spend grew 16.4 per cent last year to over £8.6 billion, with 78 per cent of this rise accounted for by mobile spend.

Video adspend grew by 50.7 per cent last year to £711 million, while video spend on just mobile nearly doubled (98 per cent) to £353 million. 

On social media, adspend grew by 45 per cent to £1.25 billion. This accounts for 41 per cent of all banner/video display adspend and over 71 per cent of social media spend goes on mobile.

Consumer goods brands, such as food and clothing, spent the most on video display ads last year, accounting for 18 per cent of all spend, followed by travel/transport and retailers.

The report, conducted by PwC, found that the 16.4 per cent rise in digital spend is the highest rate since 2008, when digital grew by 17.1 per cent. 

The number of internet-ready devices per household has increased by 12 per cent to 8.3 per household, with a 27 per cent rise in smart TVs, 21 per cent rise in smartphones, while laptops outgrew laptops (18 per cent and 16 per cent respectively). 

Programmatic trading also continues to grow, with its share rising from 47 per cent in 2014 to 60 per cent, or £1.6 billion, last year. 

Tim Elkington, the chief strategy officer at the IAB UK, said: "The increasing array of devices people use to go online has helped digital ad spend hit another gear as advertisers look to reach them and time spent online increases,"

"Smartphones are the major driving force behind this, as people increasingly use them for activities they used to do on desktop, from searching and shopping to social and watching video." 

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