Digital advertising spend rose in first half of 2022

In IAB UK’s half yearly digital adspend update, produced by PwC, advertising spend online was £12.52bn for the first half of the year.

The latest figures follow a tumultuous 2020 and 2021, with a 5% dip in digital advertising spend in 2020 during the initial months of the Covid-19 pandemic followed by a 55% rise in the first half of 2021.

The 15% rise in the first half of 2022 is commensurate with figures seen in the same period in 2018 and 2019.

According to the latest data, search accounted for the majority of digital advertising spending, with the sector worth £6.66bn in the first half of 2022 – up 16% year-on-year and making up 53% of the total digital advertising market.

Display has grown by 8%, with spend on video display increasing by 6% and non-video increasing by 10% year-on-year.

In terms of devices, mobile accounted for 57% of all spending, but spending on non-mobile ads has grown by 38% year-on-year in the first six months of 2022.

Classified ads also saw strong growth, up 42% year-on-year, according to IAB UK.

Jon Mew (pictured), chief executive at IAB UK, said: “Today’s results indicate that we have returned to a point where growth is strong but more sustainable.

“Looking to the future, we have Christmas and the World Cup coming up, which will likely see spend peak in 2022, but digital advertising won’t be immune to tightening budgets as the cost-of-living crisis takes hold.

“Continuing to invest in marketing throughout challenging times is well documented, and digital has the benefit of offering advertisers a powerful combination of proven results and flexibility.”