Executive Summary

The pandemic put a dent—albeit a small one—in the projected growth rate for UK programmatic display ad spending. But strong growth is expected in 2021, as automation’s reach extends into traditional channels. However, trust in open exchanges is diminishing.

How much will be spent on UK programmatic advertising in 2021?

UK programmatic display ad spending will reach £7.90 billion ($10.09 billion) in 2021, up 16.4% from 2020 to account for 93.6% of total display ad spending.

How did the pandemic affect our forecasts?

Our pre-pandemic UK programmatic digital display ad spending growth estimate for 2020 (17.5%) was revised downward in October to 9.4%.

What have been the underlying drivers for these changes?

During the pandemic, consumers leaned into a lot of digital media. Advertisers took advantage and employed automation wherever they could. Digital video performed incredibly well, while the strength of social media advertising meant that programmatic direct’s influence was keenly felt. Outside of social media, open exchanges came under pressure, with 2020 ad spending in public auctions falling 2.4% as advertisers sought greater control and certainty through programmatic direct and private marketplace (PMP) buys.

Which nascent areas will affect future growth?

Digital out-of-home (DOOH) advertising is making the move to automation, though from a very small base. Connected TV (CTV), meanwhile, represents one of the biggest growth areas for programmatic display advertising.

WHAT’S IN THIS REPORT? This report presents our updated forecast for UK programmatic digital display ad spending through 2022. It provides context for how the programmatic market is growing across transaction types, formats, and devices.

KEY STAT: UK programmatic ad spending rode out the 2020 storm and will grow strongly through 2022 to reach £9.01 billion ($11.50 billion).