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news / 11 months ago

Where advertising budgets went in 2016.

The digital advertising mediums businesses just can’t do without...


Vic Dadson

[Content Executive]


21/04/2017 @ 08:26am



Any doubts about the direction digital advertising is heading in have been squashed with the release of the annual IAB Digital AdSpend report.

Last year, the fastest-growing digital advertising format was mobile video, which more than doubled when compared to the year before. UK advertisers invested £693 million in the medium, with mobile accounting for 63% of all video spend.

This growth is projected to continue throughout 2017 as publishers and platforms continue to innovate and experiment with new ways to connect with their audiences.

Overall, digital ad spend grew faster last year than it has done for the past nine years, with the 17.3% rise bringing the overall total to £10.3 billion. Mobile accounts for a large proportion of this rise, growing 51% to account for 38% of all digital spend.

With the rate mobile ad spend is going, we expect to see it become the dominant force in digital advertising before the end of the decade.

Paid search still holds the title of the most popular advertising format, accounting for 48% of all digital spend in 2016, hardly surprising when it is arguably the most effective digital medium for generating conversions. In total, £4.99 billion was spent on search marketing in 2016.

Display advertising is still growing in popularity across all platforms, but the bigger news is that 72% of display advertising is now traded programmatically. If you’re not au fait with programmatic advertising, you may find our free guide to be a useful introduction.

You can read the full report from the Internet Advertising Bureau and PwC on the IAB website, although you’ll need to be a member to access the data.


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