IAB: Digital ad market returns to pre-pandemic growth levels | WARC | The Feed

IAB: Digital ad market returns to pre-pandemic growth levels

A new analysis by the IAB and PwC finds that the UK’s digital ad market returned to pre-pandemic growth of 15% year-on-year in the first half of 2022.

Why it matters

Amid an economically tumultuous year for the UK’s significant digital ad market, a return to the 15% growth levels seen in 2018 and 2019 are welcomed by the digital ad industry’s trade body.

The continued growth in a mature and highly penetrated market isn’t so much a sign of new audiences coming online, but an indication that digital ad formats are important to UK business. But there’s also a deeper trend here, with reach harder to come by and more expensive at a time of rising costs and slimmer margins.

Key numbers

IAB UK and PwC’s analysis is based on modelled data for digital advertising between January and June and covers spending on Search, Display (video and non-video), Classified, Mobile and Non-Mobile.

• Mobile is the most important device, with 57% of all spending going to mobile formats. However, non-mobile ad formats grew more quickly with a 38% year-on-year growth.
• Search makes up 53% of the total digital ad market, and has seen a 16% year-on-year increase.
• Display advertising grew by 8% in total, with video display up 6% and non-video ads up 10%.
• Classified ads saw very strong growth of 42% year-on-year, perhaps signalling the growing importance of resale and second-hand buying or a highly competitive employment market.

From frothy growth to a mature market

“Today’s results indicate that we have returned to a point where growth is strong but more sustainable,” said IAB UK chief executive John Mew in a statement.

“Looking to the future, we have Christmas and the World Cup coming up, which will likely see spend peak in 2022, but digital advertising won’t be immune to tightening budgets as the cost-of-living crisis takes hold.”

Sourced from the IAB, WARC