LONDON: Smartphone advertising expenditure keeps growing, driven largely by smartphone video ads which jumped by 69% in 2017 according to new data from the IAB UK, making this by far the fastest-growing online ad format.
The latest Digital Adspend report by the Internet Advertising Bureau (IAB) UK and PwC revealed that advertisers spent £476m more on smartphone video ads in 2017, taking the total to £1.17bn.
Video ad spend overall (including phones, computers and tablets) increased 47% to £1.61bn – so 73% of all video spend last year went on smartphones.
All forms of advertising on smartphone grew 37.4% so that smartphones now account for 45% of the total digital adspend figure of £11.55bn, compared to just 9% five years ago.
And there’s room for that to grow further, since, as IAB chief digital officer Tim Elkington noted, they accounted for 59% of online time in the final quarter of 2017.
“Digital has led to a change in consumer behaviour as people use their smartphone for a wider variety of things,” he said.
“The ad community has responded to this change – particularly the growth of mobile and video – by developing dynamic ad products that fit seamlessly into their environment.”
A YouGov survey that accompanied the report revealed that, in terms of online smartphone activities, listening to a podcast has seen the biggest rise amongst smartphone users, with a ‘net’ rise in popularity of 30% followed by viewing social media ‘stories’ (up 29%), reading news articles (up 24%) and learning a new skill (up 22%).
The IAB study also showed social media spending growing 38% to £2.39bn, or one in every five pounds spent on digital ads; 83% of social media budgets now go to smartphones.
The AA/WARC Expenditure Report is published tomorrow, giving details of all advertising expenditure in the UK during 2017, including traditional media.
The latest Digital Adspend report by the Internet Advertising Bureau (IAB) UK and PwC revealed that advertisers spent £476m more on smartphone video ads in 2017, taking the total to £1.17bn.
Video ad spend overall (including phones, computers and tablets) increased 47% to £1.61bn – so 73% of all video spend last year went on smartphones.
All forms of advertising on smartphone grew 37.4% so that smartphones now account for 45% of the total digital adspend figure of £11.55bn, compared to just 9% five years ago.
And there’s room for that to grow further, since, as IAB chief digital officer Tim Elkington noted, they accounted for 59% of online time in the final quarter of 2017.
“Digital has led to a change in consumer behaviour as people use their smartphone for a wider variety of things,” he said.
“The ad community has responded to this change – particularly the growth of mobile and video – by developing dynamic ad products that fit seamlessly into their environment.”
A YouGov survey that accompanied the report revealed that, in terms of online smartphone activities, listening to a podcast has seen the biggest rise amongst smartphone users, with a ‘net’ rise in popularity of 30% followed by viewing social media ‘stories’ (up 29%), reading news articles (up 24%) and learning a new skill (up 22%).
The IAB study also showed social media spending growing 38% to £2.39bn, or one in every five pounds spent on digital ads; 83% of social media budgets now go to smartphones.
The AA/WARC Expenditure Report is published tomorrow, giving details of all advertising expenditure in the UK during 2017, including traditional media.
Sourced from IAB UK; additional content by WARC staff