IAB UK has reported investment in video, spanning social platforms, broadcasters, streamers and publishers, has outpaced total market growth.
The UK’s digital ad market surpassed £40 billion in spend last year, growing by 10%, and significantly outpacing UK GDP growth of 1.4%.
This is according to IAB UK’s latest Digital Adspend study, conducted in partnership with Oliver Wyman.
Video investment
The study found that video has seen a rise of 20% year-on-year to £9.3 billion.
Video now accounts for 23% of total digital ad spend, with TV+ representing 34% of all video investment.
This growth reflects advertisers’ increasing focus on high-impact, full-funnel formats.
Jon Mew, CEO of IAB UK, said: “Digital advertising has continued to show resilience in a challenging environment.”
“The acceleration of video – particularly TV+ and social video – demonstrates how quickly media consumption is evolving and how confidently advertisers are following audiences.”
“As AI, measurement and full-funnel expectations reshape the landscape, those that combine creativity, data and accountability will be best placed to drive growth in the years ahead.”
Key findings
- 48% of respondents cited AI and automation as a defining force for the sector over the next decade
- 57% expect digital budgets to increase in 2026, with video, retail media and DOOH forecast to see the strongest gains
- The market is forecast to grow 10.3% in 2026 to £44.7bn, reaching £49.1bn by 2027
Social media spend rose 21% to £11.5bn, accounting for 28% of the market.
Within this, video continues to drive momentum, now making up 59% of total social investment.
Search maintained its market dominance, accounting for 44% of total digital ad spend in 2025. Investment grew 6% year-on-year to reach £17.9bn.
Retail Media saw strong growth, up 18% to £3.8bn, as advertisers prioritised closed-loop measurement and first-party data environments.
Digital Out of Home (DOOH) increased 11% to £1.1bn, and Gaming rose 11% to £1.3bn.
Despite continued economic and regulatory pressures, growth was steady across the year, with H1 reaching £18.7bn and H2 rising to £21.8bn.