United Kingdom Digital Ad Spend Market Size & Forecast by Spend Value Across 100+ KPIs by Type of Advertising Channel, Format & Media, Platforms, Pricing Models, Industry, Digital Ecosystem, and Media Buying Method - Databook Q1 2026 Update

Key Trends and Drivers in Digital Ad Spend

Retail Media Networks Are Gaining Momentum Across UK Advertisers

• Retailers in the UK are building or expanding their advertising offerings, creating new opportunities for brands to advertise directly within commerce ecosystems. Tesco, Sainsbury’s, and Boots have all developed retail media platforms, allowing FMCG and consumer brands to target customers through on-site and off-site placements. Amazon Ads also plays a central role in the UK retail media landscape.
• This growth is driven by increased demand for first-party data as third-party cookies phase out. Retailers possess rich behavioural insights from loyalty programmes and transactional histories. Advertisers are using these signals for targeting and attribution, especially within grocery, pharmacy, and household goods categories.
• Retail media is expected to intensify over the next few years, with advertisers reallocating budget from social or display channels into retail ecosystems. Retailers will increasingly bundle media with supply chain and promotional trade spend, reshaping how consumer brands allocate performance budgets.

CTV and Ad-Supported Streaming Are Restructuring Video Budgets

• In the UK, broadcasters and streaming platforms are scaling their ad-supported video offerings. ITV has continued to expand ITVX, while Channel 4 maintains its All 4 platform. International players like Netflix and Disney+ have introduced ad-supported tiers in the UK, opening premium streaming environments to advertisers.
• This trend is driven by shifts in consumer viewing habits, with on-demand content displacing linear TV. Simultaneously, advertisers are demanding brand-safe, high-attention video inventory with measurable outcomes.
• As more households adopt CTV devices and platforms enhance measurement tools, digital video budgets will increasingly favour connected TV over traditional linear placements. Over time, a larger share of national TV campaigns will be executed through digital video ecosystems.

AI-Driven Ad Personalisation Is Being Integrated Across Major Platforms

• UK advertisers are deploying AI tools for creative optimisation, bidding strategies, and audience segmentation. Platforms such as Meta, Google, and TikTok offer machine learning-based campaign setups (e.g., Advantage+, Performance Max, Smart Bidding) that automate much of the decision-making process.
• This automation is driven by the need for performance efficiency amid inflationary cost pressures, as well as platform-led shifts toward privacy-preserving targeting. AI tools allow brands to test multiple creative versions, allocate budget dynamically, and personalise ads without relying on individual user data.
• Over the forecast horizon, AI-enabled campaign delivery will become standard across most major platforms. However, advertisers will need to invest in creative modularity and internal measurement frameworks to ensure transparency and control in AI-led execution.

First-Party Data Strategy and Consent Management Are Gaining Priority

• As the UK moves toward a more regulated data environment post-GDPR, advertisers are strengthening their consent frameworks and first-party data strategies. The Information Commissioner’s Office (ICO) has reinforced its stance on transparency in advertising, especially in cookie use and audience profiling.
• Brands and publishers are deploying consent management platforms (CMPs), exploring contextual targeting, and building direct customer relationships through loyalty, email, and content strategies. Publishers like The Guardian and Immediate Media have developed logged-in experiences and direct ad sales models to improve targeting precision.
• This shift will continue as third-party identifiers lose viability. First-party data will become a competitive differentiator, particularly in sectors such as finance, retail, and automotive, where personalisation and regulatory compliance intersect.

Green Advertising Practices and Carbon Measurement Are Emerging as Planning Criteria

• Sustainability concerns are starting to influence digital ad strategy in the UK. Agencies and advertisers are now factoring carbon emissions into media planning decisions, using tools developed by industry bodies like Ad Net Zero and AdGreen.
• This trend is driven by corporate ESG commitments and pressure from investors and consumers to reduce digital supply chain emissions. The UK advertising industry has begun setting net-zero targets, and publishers are making their carbon footprints more transparent.
• Over the next few years, carbon-aware media planning will expand beyond pilot initiatives. Advertisers will evaluate supply path optimisation (SPO), server-side bidding, and creative weight as part of emissions management, introducing a new dimension to digital budget allocation.

Competitive Landscape in Digital Ad Spend

Market Structure Is Concentrated but Competitive Dynamics Are Evolving

• The UK digital ad market remains dominated by global players Google, Meta, Amazon, and Microsoft who continue to command the majority of spend. However, competition is increasing from retail media networks, local publishers, and ad-supported streaming platforms.
• Amazon Ads has notably expanded its UK operations by enhancing self-serve tools, offering offsite display and video inventory, and linking ads to its fulfilment ecosystem. Meta and Google continue to compete on automation, performance, and privacy-aligned ad solutions. Microsoft, through its acquisition of Xandr and partnership with Netflix, is strengthening its programmatic and video advertising footprint.

Local Publishers and Retailers Are Building Full-Funnel Advertising Capabilities

• Major UK publishers such as The Guardian, News UK, and Reach Plc are investing in first-party data platforms, custom ad formats, and contextual targeting engines. These efforts aim to attract advertisers seeking transparent, brand-safe environments amid concerns over misinformation and brand adjacency.
• Retailers such as Tesco (through Tesco Media and Insight), Boots, and Sainsbury’s are building advertising ecosystems that span online storefronts, loyalty data, and in-store placements. These networks offer FMCG advertisers closed-loop attribution and targeted access to purchase-ready consumers.
• These developments mark a shift in competitive strategy, with publishers and retailers adopting ad-tech capabilities traditionally seen in global platforms.

New Entrants and Streaming Platforms Are Diversifying the Supply Landscape

• Ad-supported video services are expanding. ITVX and Channel 4’s All 4 remain core domestic players, but recent entrants like Netflix (via Microsoft partnership) and Disney+ have introduced premium, ad-supported streaming in the UK.
• Additionally, players such as Rakuten Advertising and Samsung Ads are offering CTV and programmatic video inventory. These channels appeal to advertisers looking to extend reach in premium video environments while moving away from linear television.
• As viewer fragmentation increases, advertisers will need to allocate budgets across more video platforms, balancing performance with brand safety and demographic reach.

M&A Activity and Strategic Collaborations Are Reshaping Supply Chains

The UK digital ad market has seen several strategic moves:

• Microsoft’s integration of Xandr in the UK has enhanced its programmatic video and display stack.
• Boots Media Group announced deeper collaborations with FMCG brands, enabling data-sharing partnerships.
• ITV formed data-sharing partnerships to integrate CFlight cross-platform measurement, aiming to compete more effectively for digital video budgets.

Regulatory Pressure Is Shaping Platform Practices and Advertiser Decisions

• The ICO continues to scrutinise cookie consent practices, algorithmic transparency, and user profiling. In the past 12 months, the regulator has reinforced expectations on consent collection, particularly around real-time bidding (RTB) and programmatic advertising.
• Publishers and platforms are investing in consent management systems and restructured ad tech stacks. Advertisers, in turn, are favouring vendors that demonstrate clear compliance, verifiable data sourcing, and minimal reliance on invasive tracking.
• UK-focused regulation is expected to remain closely aligned with GDPR, but advertisers should anticipate more guidance and enforcement on dark patterns, ad targeting transparency, and ethical data use.

Report Scope

United Kingdom Ad Spend Market Size and Growth Dynamics

• Spend Value

United Kingdom Ad Spend Market Segmentation by Advertising Channel

• Television Advertising
• Print Advertising
• Radio Advertising
• Outdoor Advertising
• Digital Advertising
• Other

United Kingdom Ad Spend Market Segmentation by Television Advertising

• Linear TV Advertising
• Connected TV / OTT Video Advertising

United Kingdom Ad Spend Market Segmentation by Radio Advertising

• Traditional Radio Advertising
• Digital Audio / Podcast Advertising

United Kingdom Ad Spend Market Segmentation by Outdoor Advertising

• Traditional OOH Advertising
• Digital Out-of-Home (DOOH) Advertising

United Kingdom Ad Spend Market Segmentation by Digital Advertising

• Spend Value

United Kingdom Digital Ad Spend Market by Segmentation

• Search Engine Sites
• Ecommerce Sites
• News & Media Sites
• Social Media
• Gaming Platforms
• Forums & Classifieds
• Others

United Kingdom Digital Ad Spend Market Segmentation by Social Media

United Kingdom Digital Ad Spend Market Segmentation by Gaming Platforms

• Around Games Environment Ad Spend
• In Game Environment Ad Spend
• In Game Immersive Ad Spend
• Exclusive Advertising Games Spend

United Kingdom Digital Ad Spend Market Segmentation by Format & Media

• Video
• Display
• Email
• Influencer Marketing
• Blogging and Podcasting

United Kingdom Digital Ad Spend Market Segmentation by Platform

• Mobile
• Desktop and Laptop

United Kingdom Digital Ad Spend Market Segmentation by Pricing Model

• Cost Per Mile (CPM)
• Cost Per Click (CPC)
• Performance Based Advertising
• Others

United Kingdom Digital Ad Spend Market Segmentation by Industry

• Technology
• Travel & Hospitality
• FMCG
• Automotive
• Media & Entertainment
• Telecommunications
• Retail & Consumer Goods
• Business and Financial Services
• Pharmaceutical and Healthcare
• Public Sector
• Construction and Real estate
• Education
• Home Appliances and Furniture
• Other Industries

United Kingdom Digital Ad Spend Market by Digital Ecosystem

• Walled Gardens
• Open Web / Independent Publishers

United Kingdom Digital Ad Spend Market by Media Buying Method

• Programmatic Advertising
• Direct Advertising

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