According to the IAB UK’s annual Digital Adspend study, produced in partnership with Oliver Wyman, the UK’s digital advertising market reached £40.5 billion in 2025. That is a 10% year-on-year increase and a significant outpacing of GDP growth. The findings, published in early March 2026, confirm the market’s continued resilience despite sustained economic and regulatory pressure.

Video recorded the strongest growth of any channel, rising 20% year-on-year to £9.3 billion and now accounting for 23% of total digital ad spend. Within video, the “TV+” category, defined by IAB UK as broadcasters, streamers and digital-first platforms, accounted for 34% of all video investment, reflecting the accelerating shift of budgets away from linear television. Social media spend rose 21% to £11.5 billion, with video now representing 59% of all social investment. Search remained the largest single channel, accounting for 44% of total spend at £17.9 billion, despite a more modest 6% growth rate.

Retail media continued its rapid expansion, rising 18% to £3.8 billion as advertisers prioritised closed-loop measurement and first-party data environments. Digital out-of-home grew 11% to £1.1 billion, and gaming rose 11% to £1.3 billion. Platforms as a category, encompassing social networks, search engines and content-sharing apps, accounted for 68% of total digital ad spend.

Looking ahead, 57% of advertisers surveyed expect digital budgets to increase further in 2026. The market is forecast to grow 10.3% this year to £44.7 billion, reaching £49.1 billion by 2027. IAB UK CEO Jon Mew said video and retail media were driving the next phase of growth, while 48% of industry respondents cited AI and automation as the most defining force shaping the sector over the coming decade.