UK Digital Ad Spend Will Continue Double-Digit Growth in 2016 - eMarketer

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UK Digital Ad Spend Will Continue Double-Digit Growth in 2016

Revenues at Facebook, Twitter and Google will outpace overall digital growth

September 28, 2016

Strong demand for digital advertising will help to keep the UK’s advertising market in the black this year, indicating that—for the moment at least—the industry is shrugging off concerns about the impact of a potential Brexit.

UK Digital Ad Revenue Growth at Google, Facebook and Twitter, 2015-2018 (% change)

This year, digital ad spending in the UK is expected to grow by 12.0%. That compares to 31.1% growth in net digital ad revenues at Facebook, 13.9% growth at Google and 13.2% growth at Twitter.

Growth at Google may appear slow compared to Facebook’s continued dramatic rise in ad revenues, but the 13.9% increase is more than double what eMarketer expected back in February, thanks to stronger-than-expected mobile ad revenues at the search giant. Google will net £3.80 billion ($5.81 billion) in ad revenues—accounting for almost 40% of all digital ad spending in the UK.

Facebook’s digital ad revenues have also been revised upward: In 2016, eMarketer predicts, the social network will net digital ad revenues of £1.19 billion ($1.82 billion). Updates to mobile video formats on Facebook, increased revenues from ads in mobile news feeds and the introduction of new Instagram ad formats have helped to drive this growth.

UK Digital Ad Revenues, by Company, 2015-2018 (millions of £)

Digital ad revenues at Twitter, meanwhile, have been downgraded by eMarketer following sluggish growth reported by the company in Q2. eMarketer predicts that Twitter’s UK digital ad revenues will grow by about 13% in 2016 to £153.5 million ($234.58 million)—this is down from previously predicted growth of 31%.

“Across search and social media, mobile’s influence on ad spending continues to be significant,” said eMarketer senior analyst Bill Fisher. “This is simply a response to consumer behavior, with the majority of social media usage now occurring on mobile, and mobile search behavior, too, becoming more pronounced.”

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