IAB ad spend study shows UK digital ad spend up 15.2% to £6.3 billion in 2013

The latest ad spend study from the IAB and PwC shows a strong increase in budgets devoted to digital from 2012 to 2013, in tandem with increased adoption of all manner of digital devices and content amongst consumers.

We’d highly recommend clicking over to the IAB website or downloading the one page overview to read up further on this seminal study but in case you’re pushed for time, here are a few highlights:
  • Mobile now commands £1 in every £6 devoted to digital advertising with the total mobile market increasing 93.3% since 2012 and has broken the £1 billion mark. In-app inventory has edged into the lead in 2013 with a 60/40 split between that and ad spend in browsers.
  • Tablet-specific campaigns have risen rapidly over the last year, with display spend going up a necessarily underestimated 400% to reach £34.4 million.
  • Video ads now comprise 18% of mobile and display with total spend on video advertising rising 62% to £324.9 million in 2013. 93% of that spend is devoted to pre and post roll.
  • Display is also still strong, thanks in part to video and social media, with the category growing by 22% overall. Consumer goods are now the biggest spending sector in the channel while banners are still the leading format commanding 52% of budget. 
  • Catalysts for growth include the fact that 48.6 million people went online in January 2014, tablet ownership rose 63% and 73% of mobile phone users are now using smartphones.   

Lead generation has not been focused on much as it is grouped into the ‘other’ category along with solus email, SMS, MMS and audio which together account for 1% of total ad spend. The IAB’s newer Value of Online Performance Marketing study however delves into both lead generation and affiliate marketing in much greater depth and shows lead generation commanded a 13% share of £1 billion overall spend on performance marketing in 2013.


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