What's Behind Double-Digit Digital Ad Market Growth? With IAB UK's Elizabeth Lane
•March 9, 2026
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Why It Matters
The double‑digit digital ad growth demonstrates a decisive shift of advertising dollars toward video and social platforms, reshaping media strategies and signaling continued revenue opportunities for digital‑first publishers despite broader economic headwinds.
Key Takeaways
- •UK digital ad spend hit £40bn, up 10% YoY.
- •Social media ad spend surged 21% to £11.5bn.
- •Video advertising grew 20%, now 23% of total spend.
- •Search remains dominant, holding 44% of digital ad market.
- •Methodology combines direct submissions, modeling, and advisory board verification.
Summary
The Media Leader podcast featured IAB UK’s head of insight, Elizabeth Lane, unpacking the latest IAB UK digital ad spend report. The study shows UK digital advertising revenue reaching a record £40 billion in 2025 – a 10% year‑on‑year increase despite a sluggish 1.4% GDP growth, underscoring the sector’s resilience.
Key data points include a 21% jump in social media ad spend to £11.5 billion, driven largely by video formats, and a 20% rise in video advertising to £9.3 billion, now accounting for 23% of total digital spend. Search remains the largest pillar, growing 6% to £17.9 billion and representing 44% of the market, while out‑of‑home and traditional TV continue to lose ground to digital channels.
Lane highlighted that social platforms are becoming hybrid entertainment‑commerce hubs, with video content fueling most of the growth. She noted the diversification of social usage – from TikTok to Reddit – and the migration of linear TV budgets into streaming and connected‑TV platforms. The report’s methodology blends direct submissions from media owners, statistical modeling, and advisory‑board validation to ensure robust estimates.
The implications are clear: advertisers are reallocating spend toward video‑centric social environments and programmatic TV, while search retains its ROI‑driven appeal. Brands that prioritize video and diversified social placements are likely to capture the bulk of future growth, prompting media owners to expand self‑serve video solutions and invest in cross‑platform measurement capabilities.
Original Description
Digital assets are have for several years been the main growth drivers for most media owners. This is as true of TV – ITV (https://uk.themedialeader.com/itv-reports-flat-revenue-as-it-remains-in-discussions-with-sky-over-me-sale/) just announced it saw 10% growth in digital revenues compared to flat overall revenue growth – as it is in publishing, as seen in the latest consumer ABC figures (https://uk.themedialeader.com/consumer-abcs-2025-five-main-takeaways/) , as it is OOH, as it is in, of course, social media and search.
So it was little surprise that, according to IAB UK’s latest digital adspend report, in 2025 the UK’s digital ad market grew 10% to £40.5bn pounds. It’s a staggering number, especially when you consider that AA/Warc estimated (https://uk.themedialeader.com/uk-adspend-expected-to-surpass-50bn-for-first-time-in-2026/) the total UK ad market reached £46.9bn pounds last year.
Adspend on social media grew 21% year on year to £11.5bn, even as industry leaders at both agencies and competing media owners made the case to "turn down the toxic (https://uk.themedialeader.com/channel-4-itv-and-sky-commercial-chiefs-ask-advertisers-to-turn-down-the-toxic/) " by divesting from social and reinvesting in more trusted media channels (https://uk.themedialeader.com/high-attention-media-is-more-profitable-finds-peter-field-lumen-and-newsworks/) .
Elizabeth Lane is the head of insight at IAB UK. She sat down with host Jack Benjamin her to unpack the latest adspend report, and why video in particular was a driving force for digital growth last year.
The duo also discussed how AI is changing search to the detriment of publishers, what to watch out for in retail media, and why gaming and digital OOH also saw double-digit growth in 2025.
Highlights:
1:21: Toplines from IAB UK's 2025 Digital Adspend Report
3:41: Social's pivot to video helps explain its 20% growth rate
13:39: Search, retail media and gaming: disruption and missed opportunities
24:06: How AI could change digital investment
Related articles:
UK adspend expected to surpass £50bn for first time in 2026 (https://uk.themedialeader.com/uk-adspend-expected-to-surpass-50bn-for-first-time-in-2026/)
High-attention media is more profitable, finds Peter Field, Lumen and Newsworks (https://uk.themedialeader.com/high-attention-media-is-more-profitable-finds-peter-field-lumen-and-newsworks/)
Reddit looks to scale through search, performance and insight (https://uk.themedialeader.com/reddit-looks-to-scale-through-search-performance-and-insight/)
Why audio is embracing video — with News Broadcasting’s Dave Wilcox and Russell Pedrick (https://uk.themedialeader.com/why-audio-is-embracing-video-with-news-broadcastings-dave-wilcox-and-russell-pedrick/)
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