Advertisers prioritise video as digital ad spend grows 5% in H1 2023

Oct 24th '23

The UK’s digital ad market attracted £13.8 billion of spend in the first six months of 2023, according to Internet Advertising Bureau (IAB UK) and PwC’s half-year Digital Adspend update.


The data shows that investment in digital advertising remained resilient at £13.8 billion in H1 2023 – a year-on-year increase of 5% despite the volatility of the UK’s economy.


Spend on video ads saw the strongest growth – up 11% – as advertisers increasingly harnessed the brand building potential of the format. The growth in spend is in line with the popularity of short-form video content, with Ofcom’s Media Nations report showing that over a third of UK adults watch short-form online videos daily, rising to 68% of 15-24 year olds. Overall, spend on display formats (including both video and non-video) grew by 8% year-on-year.


Meanwhile, search ads continued to attract the lion’s share of investment, accounting for 50% of the total market. The category grew 5%, attracting nearly £7 billion across the first six months of 2023.


Classified ads were the only format to see spend decline with a fall of 13%, although this is markedly less sharp than the 21% fall seen in H1 2022. When it comes to split by device, spend on mobile ads grew by 9% with non-mobile formats remaining flat.


Commenting on the results, Jon Mew, IAB UK’s CEO, said: “The results we’ve released today reflect two things – that the digital ad market isn’t immune to wider economic pressures, but also that it’s repeatedly resilient in the face of challenging circumstances. Over the years, we have become used to seeing extremely strong growth and there is no getting away from the fact that spend has slowed so far this year. And yet the industry is still growing despite the UK’s soaring inflation, the threat of recession, and the impact of structural changes – such as the removal of IDFA. 


“It’s particularly encouraging that video formats are seeing strong investment. Advertisers are increasingly harnessing the creative power of digital channels to bring campaigns to life and deliver long-term results, and we see this reflected in robust video investment. As we head into the final months of 2023 and the lead up to Christmas, advertisers should be doubling down on a digital-first approach to make an impact, drive results and resonate with consumers where they’re choosing to spend their time.”


Download charts


Source: IAB UK


About us

LS Consultancy are experts in Marketing and Compliance, and work with a range of firms to assist with improving their documents, processes and systems to mitigate any risk.


We provide a cost-effective and timely bespoke copy advice and copy development services to make sure all your advertising and campaigns are compliant, clear and suitable for their purpose.


Our range of innovative solutions can be tailored to suit your unique requirements, no matter whether you’re currently working from home, or are continuing to go into the office. Our services can be deployed individually or combined to form a broader solution to release your energies and focus on your clients.


Contact us today for a chat or send us an email to find out how we can support you in meeting your current and future challenges with confidence.


Explore our full range today.


Need A Regulatory Marketing Compliance Consultant? A Bit More About Us


Contact us


Why Not Download our FREE Brochures! Click here.


Call Us Today on 020 8087 2377 or send us an email.


We welcome individual bloggers / Professional Writers / Freelancers to submit high quality contents. Find out more…



Connect with us via social media and drop us a message from there. We’d love to hear from you and discuss how we can help.


Facebook | Instagram | LinkedIn | X (formally Twitter) | YouTube


Contact us