According to the latest Internet Advertising Bureau UK and PwC Digital Adspend report, expenditure for video adverts has increased 46% the year over. The boost is largely driven by popularity for the format. In 2017, UK advertisers spent £699 million on video ads. Meanwhile, banner ads increased a mere 2% to £685 million.
Video now accounts for 35% of all display ad spend, according to the report.
Whilst people are spending more time watching video (from 51 minutes in 2014 to 2.21 hours a week in 2017), spending on outstream and social in-feed video formats almost doubled and has become the most popular format. It accounts for 52% of video spending (£363 million), ahead of pre- and post-roll formats that together make up 44%.
According to Jon Mew, CEO of IAB UK:
“The time people spend watching online video has grown tremendously over the last few years, so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content.”
Meanwhile, digital advertising jumped 18% to £2 billion, whilst search grew 15% to £2.8 billion.
As half of UK internet time is now spent on smartphones, mobile’s share of digital ad spend rose from 35% to 43% or £2.37 billion. The format showed a growth of 38% the year over and accounts for 57% of all display ad expenditure, a whopping 70% of video spend and 83% of social media spending.
Dave Counsell, Digital Trading Director, the7stars, said:
“There’s no doubt that video is digital’s most important and powerful format. Growth in online consumption, improvements in measurement, quality of placements, targeting and creativity are now available alongside its unrivalled effectiveness. It’s an extremely exciting time to witness the strong results video is providing for advertisers.”
Social media ad expenditure increased 42% to £1.05 billion. It now accounts for more than half of the display ad market at 53%. Mew adds:
“Historically, growth has been the major and constant theme about digital ad spend. However, that’s only one indicator of the industry’s success, and as the IAB UK enters its 21st year, it’s about shifting focus to initiatives that will ensure the long-term sustainable health of the industry as it enters adulthood, and provide advertisers with the best possible environment.”