April 30th 2015

Digital adspend to overtake traditional media this year?

Digital adspend in the UK increased 14% to a record £7.2bn in 2014

The IAB’s latest Digital Adspend report calculated that the average British household now owns 7.4 internet-connected devices, while 40% of households own at least one tablet.About one-fifth (19%) of British homes have two tablets, while 11% own three or more, although smartphones remain the most popular device at 1.7 per household, compared with 1.2 tablets per household.

More and more savvy advertisers are increasing their digital budgets, generally at the expense of traditional offline media, to reach people who are going online more and more with different devices.

Display took roughly a third (32%) of total digital adspend, after growing 26.4% to £2.27bn in 2014. Marketers increasingly seeing online as a viable brand awareness advertising medium, rather than one for just generating an immediate direct response.

Mobile adspend grew 63% to £1.62bn last year, the report said, and it now accounts for almost a quarter (23%) of all digital adspend, up from 16% in 2013.

Turning to other formats, social media adspend grew 65% to £922m, with more than half of that (56%) coming from mobile, while content and native advertising grew to £509m.

Video advertising increased 43% year-on-year to £442m while mobile video advertising grew an impressive 142% to £164m.

Paid-for-search increased 8.7% to £3.77bn, the IAB said, while classifieds rose 11.6% to £1.05bn, or 15% of total digital adspend in 2014.

We have no doubt, here at Top Cat Media, that video will be the biggest percentage growth market again this year, and probably for the next next five after that.

If you haven’t considered video before, now is the time. Call us now to arrange a meeting.

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