In the ever-evolving realm of digital advertising, staying informed about market trends and shifts is paramount for businesses aiming to thrive in the competitive landscape. The latest IAB UK and PwC full-year Digital Adspend report for 2023 offers a comprehensive overview of digital advertising spending, unveiling notable insights and trends that shaped the industry over the past year.
Staggering Growth
The report reveals a significant 11% growth in the digital advertising market in 2023, reaching an impressive total of £29.6 billion. This growth outpaced the GDP growth of 0.1%, underlining the resilience and dynamism of the digital advertising sector in the face of broader economic trends.
Rise of Podcast Advertising and Streaming
One of the standout trends highlighted in the report is the remarkable surge in spend on podcasts, which grew by a whopping 23% to £83 million. Similarly, streaming experienced a solid 4% year-over-year growth, further solidifying its position as a pivotal advertising channel. The total audio advertising sector witnessed a commendable 12% year-over-year growth, amounting to £156 million.
CTV and Emerging Channels
Connected TV (CTV) devices emerged as a key player in the digital advertising landscape, recording a notable 21% increase in spend. CTV, along with social video, recorded the highest increases in spend, outperforming other segments of the digital ad market. This trend can be attributed, in part, to their resilience against upcoming cookie changes compared to other forms of advertising.
Inclusion of Digital OOH and Retail Media
In a significant development, digital out-of-home (DOOH) spend was included in the report for the first time, registering a remarkable 12% growth in ad spend to £841 million. Additionally, spend in digital retail media saw a notable 12% increase to £283 million, with the abundance of retailer first-party data emerging as a major draw for advertisers.
Looking Ahead
Despite the ongoing changes and challenges in the digital advertising landscape, the report indicates a positive outlook for the industry. The IAB forecasts total digital ad spend to grow by 8.3% to £32 billion in 2024, reflecting the continued resilience and growth potential of digital advertising channels.
Empowering Decision-Making
For businesses and marketers navigating the complex digital advertising ecosystem, insights from reports like the IAB UK and PwC Digital Adspend report are invaluable. By understanding market trends, emerging channels, and consumer behaviors, businesses can make informed decisions to optimize their advertising strategies and stay ahead of the curve in a rapidly evolving digital landscape.
To delve deeper into the insights and findings of the report, download the full report here.
Disclaimer: Digital Adspend 2023 is based on both data submitted to the IAB and PwC and modelled spend data for the digital advertising industry between January and December 2023.
