Fueled by digital channels that are now dominating two-thirds of all spend, the UK's advertising industry isn't just growing—it’s powering a £36.4 billion engine that contributed over £100 billion to the economy, setting the stage for another record year in 2024.
Key Takeaways
- In 2023, the total UK advertising expenditure reached £36.4 billion, marking a 10.5% year-on-year growth driven by digital channels
- UK ad market grew by 11.2% in 2022 to £31.9 billion according to WARC, with recovery post-pandemic boosting investments
- Forecast for UK ad spend in 2024 is £38.2 billion, a 5% increase, per GroupM's This Year Next Year report
- Digital ad spend in UK hit £24.3 billion in 2023, 66% of total market
- Search advertising accounted for £9.8 billion in 2023, 40% of digital spend, per IAB UK
- UK social media ad spend reached £5.6 billion in 2023, up 15% YoY
- TV advertising revenue in UK was £4.9 billion in 2023, down 2% YoY
- Broadcaster video-on-demand ad revenue reached £1.2 billion in 2023
- ITV ad revenue totalled £1.7 billion in 2023
- Print newspaper ad revenue fell to £500 million in 2023, down 8%
- Magazine ad spend was £300 million in 2023, decline of 10%
- Total print media ad spend £800 million in 2023, 2.2% market share
- FMCG sector ad spend was £4.2 billion in 2023, 11.5% of total
- Retail ad spend totalled £5.1 billion in 2023, leading category
- Finance & insurance ads £3.8 billion, 10.4% share 2023
The UK advertising industry is thriving, with record digital spending driving strong market growth.
Advertising Expenditure by Sector
- FMCG sector ad spend was £4.2 billion in 2023, 11.5% of total
- Retail ad spend totalled £5.1 billion in 2023, leading category
- Finance & insurance ads £3.8 billion, 10.4% share 2023
- Automotive sector spent £2.9 billion on ads in 2023
- Telecoms & media ad budget £2.5 billion in 2023
- Travel & leisure ads £1.8 billion post-recovery 2023
- Pharma & healthcare £1.6 billion ad spend 2023
- Entertainment & gambling £2.2 billion, up 18% 2023
- Food & drink ads £3.1 billion, 8.5% market 2023
- Tech sector digital ad spend £1.9 billion 2023
- Pharma ads £1.7b 2023 regulatory compliant
- Motor £3.0b including digital 2023
- Charities £1.1b ad spend 2023
- Alcoholic drinks £1.4b Portman rules
- Fashion retail £2.8b 2023
- Government/public sector £900m 2023
- Household goods £2.0b 2023
- Top 100 advertisers 65% of spend £20b 2023
- Ecommerce platforms £1.5b retail media 2023
Advertising Expenditure by Sector Interpretation
While retail spent the most to tempt you at the checkout, and finance firms whispered sweet nothings about your future, the real story is that nearly every sector, from fizzy drinks to pharmaceuticals, is locked in a lavishly expensive arms race just to earn a moment of your scrolling attention.
Digital Advertising
- Digital ad spend in UK hit £24.3 billion in 2023, 66% of total market
- Search advertising accounted for £9.8 billion in 2023, 40% of digital spend, per IAB UK
- UK social media ad spend reached £5.6 billion in 2023, up 15% YoY
- Video advertising online grew to £4.2 billion in 2023, 17% increase
- Retail media networks in UK generated £2.1 billion in ad revenue 2023
- Programmatic advertising spend was £12.4 billion in UK 2023, 51% of digital
- Display ad spend excluding social/video was £2.7 billion in 2023
- Mobile advertising in UK totalled £15.1 billion in 2023, 62% of digital
- Audio digital ads (podcasts/ streaming) reached £450 million in 2023, up 25%
- Influencer marketing spend in UK was £1.16 billion in 2023
- CTV/OTT ad spend grew to £800 million in 2023, 30% YoY growth
- UK online video ad viewability averaged 72% in 2023
- DOOH (digital out-of-home) ad spend hit £650 million in 2023
- Email marketing ROI averaged 42:1 in UK ad campaigns 2023
- UK affiliate marketing spend was £1.4 billion in 2023
- Digital ad spend Q4 2023 £6.8 billion record
- Social ads £5.6 billion, Meta 60% share 2023
- YouTube ad revenue UK £2.1 billion 2023 est
- Native advertising £1.8 billion digital 2023
- Gaming ads £850 million 2023
- Connected TV ads £900 million 2023
- UK search share Google 92%, £9.2 billion spend
- Display ads £3.5 billion including social 2023
- Voice search ads emerging £100 million 2023
Digital Advertising Interpretation
The UK's digital ad landscape is a £24.3 billion testament to our collective attention being auctioned off with ruthless efficiency, where Google and Meta act as the primary toll-keepers on a highway paved with social scrolls, targeted videos, and the quiet hope that someone will finally click 'buy now'.
Industry Trends & Consumer Insights
- 68% of UK marketers plan to increase digital budgets in 2024, per IAB
- 45% of ad campaigns used AI in 2023, up from 22% in 2022
- Sustainability claims in ads rose 25% in 2023
- 72% of consumers trust branded social media more than influencers, 2023 survey
- Ad blocking usage at 35% among UK internet users in 2023
- Privacy-first advertising adopted by 60% of agencies post-GDPR 2023
- User-generated content in ads boosted engagement 3x in 2023 tests
- 55% of Gen Z prefer shoppable ads on social platforms
- Cross-device attribution used in 48% of campaigns 2023
- Diversity representation in ads improved to 28% non-white in 2023
- UK ad industry employed 150,000 people directly in 2023
- Average ad agency salary £55,000 in London 2023
- 82% of UK ad spend ROI measured via multi-channel analytics 2023
- Podcast ad recall 4x higher than radio, UK study 2023
- 40% growth in performance marketing budgets 2023-2024
- UK ad complaints to ASA totalled 38,000 in 2023, up 5%
- 76% marketers prioritize first-party data 2024
- Metaverse ad trials £50m experimental 2023
- ASA upheld 25% more gender stereotype complaints 2023
- 62% consumers avoid brands with poor ethics ads
- AR/VR ads engagement +40% 2023 pilots
- Cookie deprecation impacted 15% budgets shift 2023
- Brand safety incidents down 30% with tools 2023
- 51% over-50s use TikTok, ad opp 2023
- Short-form video ads 70% preference under-35s
- Agencies 92% hybrid working model 2023
Industry Trends & Consumer Insights Interpretation
The UK advertising industry is a fascinating paradox, desperately throwing more digital money and AI at the problem while simultaneously trying to be more ethical, sustainable, and human in its approach, all while consumers block ads, demand authenticity, and can't decide if they trust influencers or branded cat videos more.
Market Size & Expenditure
- In 2023, the total UK advertising expenditure reached £36.4 billion, marking a 10.5% year-on-year growth driven by digital channels
- UK ad market grew by 11.2% in 2022 to £31.9 billion according to WARC, with recovery post-pandemic boosting investments
- Forecast for UK ad spend in 2024 is £38.2 billion, a 5% increase, per GroupM's This Year Next Year report
- Advertising as a percentage of GDP in the UK stood at 1.4% in 2023, aligning with European averages
- Total media ad spend in Q1 2024 hit £4.8 billion, up 8.7% from Q1 2023, per AA/WARC Expenditure Report
- UK ad industry contributed £100 billion to the economy in 2022 through direct and indirect impacts
- Ad spend per capita in the UK was £540 in 2023, higher than the EU average of £450
- Between 2019-2023, UK ad market CAGR was 6.2%, fueled by ecommerce growth
- H1 2023 ad spend totalled £17.2 billion, up 12% YoY
- Projected ad spend growth for 2025 is 4.8% to £40.1 billion, per Ebiquity
- Total ad spend 2022 was £31.9 billion with 11% growth
- Q2 2024 ad spend £5.1 billion, up 7.2%
- Ad market forecast 2023 was £32.5 billion pre-actuals
- Internet ad share 65% in 2023
- Economic impact £116 billion GVA from ads 2023
Market Size & Expenditure Interpretation
The UK's advertising industry is a relentless economic engine, cleverly convincing nearly £540 from every person to fuel a £36.4 billion market that propels the entire economy forward.
Out-of-Home & Print Advertising
- Print newspaper ad revenue fell to £500 million in 2023, down 8%
- Magazine ad spend was £300 million in 2023, decline of 10%
- Total print media ad spend £800 million in 2023, 2.2% market share
- UK OOH advertising totalled £1.4 billion in 2023, up 12% YoY
- DOOH portion of OOH was 45% or £630 million in 2023
- Transport OOH ad spend £350 million in 2023
- Billboard OOH revenue £550 million, 39% of total OOH 2023
- Regional newspaper ad revenue £400 million in 2023
- Direct mail ad spend £1.2 billion in 2023, flat YoY
- Classified ads in print dropped to £150 million in 2023
- OOH ad impressions reached 50 billion in UK 2023
- Print ad revenue newspapers £520m 2022
- Consumer mags £280m 2023
- OOH total £1.5 billion forecast 2023 actual £1.4b
- Street furniture OOH £250m 2023
- Ambient media £180m growth area 2023
- DM ROI 35:1 average 2023
- National newspaper ads £320m 2023
- B2B print £450m stable 2023
- OOH effectiveness 2.7x footfall uplift
Out-of-Home & Print Advertising Interpretation
The print media's obituary was written in disappearing ink, while out-of-home advertising boldly declared its presence on every street corner, proving that the battle for attention has moved from the hand-held page to the entire built environment.
TV & Broadcast Advertising
- TV advertising revenue in UK was £4.9 billion in 2023, down 2% YoY
- Broadcaster video-on-demand ad revenue reached £1.2 billion in 2023
- ITV ad revenue totalled £1.7 billion in 2023
- Sky Media ad sales hit £1.1 billion in FY2023
- Channel 4 ad revenue was £1.05 billion in 2023, up 5%
- UK commercial TV share of ad market was 13.5% in 2023
- Total TV ad spend Q4 2023 was £1.3 billion, seasonal peak
- Addressable TV advertising grew 20% to £250 million in 2023
- TV ad GRPs delivered 42 billion impacts in 2023
- Cinema advertising revenue in UK was £180 million in 2023, recovering 15%
- Radio ad revenue totalled £700 million in 2023, stable YoY
- National TV ad spend was £3.2 billion vs spots £1.7 billion in 2023
- TV ad effectiveness: 2.5x uplift in brand sales per Kantar
- TV ad revenue £5.0 billion 2022 actual
- BVOD ad revenue £1.4 billion 2023
- BBC commercial ad-free but S4C £50m
- Commercial linear TV £3.5 billion 2023
- TV spot market £1.8 billion H1 2023
- Sponsorship TV deals £400 million 2023
- Radio digital £250 million 2023
- Cinema recovery £200 million full year 2023
- TV reach 85% weekly UK adults 2023
TV & Broadcast Advertising Interpretation
While the traditional TV spot may be slowly yielding the stage to its digital understudy, the show's still a blockbuster, proving that when a medium can reliably deliver both an audience and a sales uplift, the ad industry will keep buying front-row seats.
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