The latest Internet Advertising Bureau UK / PwC Digital Adspend report shows total digital advertising expenditure grew 13.8% to £5.56bn in the first six months of the year, compared to the same period a year earlier.
Spending on online video ads, however, grew three times as fast, at 46%, to reach £699m, while that on banner ads slowed to just 2%, taking it to £685m for the half year.
Video is the fastest-growing ad format and now accounts for 35% of all spend going on display advertising.
“The time people spend watching online video has grown tremendously over the last few years,” noted Jon Mews, IAB CEO, “so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content.”
Specifically, the time people spend watching short video clips has almost trebled over the last three years, as YouGov figures show an average of 51 minutes a week in September 2014 growing to two hours 21 minutes a week in September 2017.
Spending is also shifting within video advertising, with outstream/social in-feed expenditure almost doubling to £363m; this now accounts for 52% of video spending the report said, overtaking pre-and post-roll ads which account for 44% (£309m).
Display advertising as a whole – including video, banners and content/native – grew 18% to £2bn, whilst search grew 15% to £2.8bn; classifieds remained flat at £692m.
Alongside the shift towards video, mobile continues to take a greater share of spending, rising from 35% to 43%.
Mobile’s year-on-year growth was 38% and, the report said, it 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 £1.05bn, accounting for over half (53%) of the display ad market.
Full market data are due to be published as part of the AA/WARC Expenditure Report later this month.
Sourced from WARC