According to an annual IAB study digital ad spend reached over £10 billion in 2016; largely driven by the demand and resulting increase in mobile ad spend. Additionally, a recent eMarketer release stated that the UK’s seventh consecutive year of increased ad investment was pushed by a 13.4% rise in digital spend, 99% of which was represented by investment in mobile.
Following a year when mobile surpassed desktop for the first time and accounted for much of the yearly growth of the digital market, these studies expect a continued increase in mobile ad investment in years to come. As stated by the IAB, mobile saw a 50.8% like-for-like increase in 2016, with mobile video having the largest growth year-on-year (+103%). With this growth expected to carry on, the need for advertisers to invest more in ads focused on an audience spending increasing amounts of time on the internet on smartphones will become even more prevalent. As we continue to spend more time on mobile devices and the scope for targeting consumers in these ad formats increases, brands are set to continue to allocate spend more to mobile ads.
Moving forward to 2017, as digital nears 60% of total ad investment in the UK, mobile is set to represent over a third of media ad spend according to eMarketer. While digital ad spend will grow by 11%, as audiences spend more time on smartphones and ad tech improves, eMarketer predicts mobile investment to increase considerably by 24.4% in 2017. Standing at £5.4 billion in 2016 and expected to reach almost £7 billion in 2017, eMarketer expects mobile ad spend will only continue to increase, reaching over £12 billion by 2021.
eMarketer “More Than a Third of UK Ad Spend Going Mobile in 2017”, March 8, 2017
eMarketer “Digital Drove UK Ad Spending in 2016”, April 26, 2017
IAB “IAB / PwC UK Digital Adspend Study – Full Year 2016”