Online video spend overtakes banner ads for first time
Advertisers are spending more on video ads than banner ads for the first time, according to the latest Internet Advertising Bureau UK/PwC Digital Adspend report, published today (16 October).
In the first half of 2017, advertisers spent £699 million on video ads - a 46% year-on-year rise - whilse spend on banner ads increased by just under 2% to £685 million. Video is the fastest-growing ad format and now accounts for 35% of all spend going on display advertising.
The time people spend watching short video clips has almost trebled over the last three years, up from 51 minutes per week in 2014 to 2 hrs 21 minutes per week in 2017, according to YouGov data.
Within video advertising, spend on outstream/social in-feed nearly doubled and is now the most popular format, accounting for 52% of video spend (£363 million), overtaking pre- and post-roll ads which account for 44% (£309 million).
Display advertising as a whole grew 18% to £2 billion, whilst search grew 15% to £2.8 billion and classifieds remained flat at £692 million.
Overall digital adspend grew 13.8% to £5.56 billion in the first half of 2017.
With half of UK internet time now being spent on smartphones, mobile’s share of digital adspend has risen from 35% to 43% (£2.37 billion).
Mobile’s year-on-year growth was 38% and now accounts for 57% of all display adspend, 70% of video spend and 83% of social media spend.
Adspend on social media sites grew 42% to £1.05 billion, accounting for over half (53%) of the display ad market.