Digital spend rises 16% to £8.6bn as mobile rules

Top brands failing badly on mobileBrand owners spent a record £8.61bn on UK digital advertising in 2015 – up 16.4% – as ownership of Internet devices increases, according to the latest Internet Advertising Bureau UK Digital Adspend report, conducted by PwC.
The 16.4% year-on-year rise in spend was the highest rate since 2008 (17.1%), as the number of connected devices per household increased 12% in a year to 8.3 per UK household.
Connected TVs saw the biggest rise in ownership (27%) followed by smartphones (21%), while laptops (18%) outgrew tablets (16%). Smartphones are the most popular Internet device (2.1 per household) followed by laptops (1.6) and tablets (1.4).
Perhaps unsurprisingly, mobile accounted for the vast majority (78%) of digital ad spend growth, increasing 60.3% year-on-year to £2.63bn – or 30.5% of all digital advertising.
Meanwhile, in trms of format, video ad spend, overall, grew 50.7% to £711m while video spend on mobile alone increased by 98% to £353m due to the increasing numbers of people watching video, TV and film on smartphones.
Content and native advertising spend – which includes advertorials and ads in social media news feeds – increased by 49.9% to £776m. And spend on social media sites grew 45% to £1.25bn – now accounting for 41% of banner/video display ad spend. Over 71% of social media spend goes on mobile.
IAB chief strategy officer Tim Elkington said: “The increasing array of devices people use to go online has helped digital ad spend hit another gear as advertisers look to reach them and time spent online increases.
“Smartphones are the major driving force behind this, as people increasingly use them for activities they used to do on desktop, from searching and shopping to social and watching video.”

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