Digital adspend continues to soar

Digital adspend continues to soar

Deepening concerns over the rise of ad-blockers have failed to quell the surge in digital adspend, according to new findings from the Internet Advertising Bureau.

Brands spent a record £3.98 billion in the UK across the first half of 2015 – a year-on-year increase of 13.4 per cent.

The latest UK Digital Adspend report, conducted by PwC, shows that digital display ad revenues in the UK have risen by 27.5 per cent to £1.31 billion.

Within the display category, video spend grew by 56 per cent to £292 million, social media spend rose by 51 per cent to £574 million, native/content spend increased by 50 per cent to £325 million and tablet spend climbed 115 per cent to £68 million.

The report also noted that mobile adspend increased by 51 per cent to £1.08 billion in the first half of 2015. 

Twenty-seven per cent of all digital adspend is now from mobile, up from 20 per cent last year. 

Jason Dormieux, the joint chief executive of MEC, said that the findings reflect consumer behaviour. He added: "While there has been a lot of recent debate about ad-blocking, we are yet to see if there will be any medium- to long-term impacts of such developments. As an industry, we are taking the right steps to address these challenges on behalf of our clients."

The IAB found that mobile represents 39 per cent of display spend, 43 per cent of video spend, 63 per cent of social media spend and 74 per cent of native/content spend. 

Tim Elkington, the chief strategy officer at IAB UK, said: "It’s clear to see the UK digital advertising industry is maintaining strong revenue growth at a much greater rate than the overall economy." 

Ben Silcox, the chief digital and data officer at Havas Helia, added: "Just treating digital display like an unlimited amount of digital posters doesn't have a long-term future.

"The winners will still be the advertisers who work a little harder and make more effort to understand real behaviour and add something that people will want."

Steve Parker, the co-chief executive at Starcom Mediavest Group UK, was not surprised by the figures, and believes that mobile and video will continue to accelerate.

He said: "While as an industry we must take ad blockers seriously, they are nothing new. Quite rightly, the consumer has always been in control.

"However, as an industry we must continue to learn and evolve and as long as we keep the consumer front of mind and deliver relevant and engaging content we will continue to see further growth across all digital platforms."

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