Britons' second-screen usage drives digital advertising to record levels
| 08 October 2014
Increasing appetite for watching video content on computers, tablets and mobile phones helped drive UK digital advertising spend up 16.6% to a record £3.5 billion in the first half of 2014.
IABThis is the standout finding of the latest Internet Advertising Bureau UK Digital Adspend report, conducted by PwC, which also revealed that online- and mobile-based video advertising grew by 59% year-on-year to £202 million in the first six months of the year. Mobile video advertising, alone, grew 196% to £63.9 million and is now the fastest growing digital ad format and mobile now accounts for a fifth of digital ad spend and 53% of social media spend.
In addition, said accompanying online YouGov data, nearly three-quarters (73%) of Britons online who own an internet-enabled device watched TV programmes online in the last six months, 72% watched short online video clips and 59% watched films online. Those watching TV online average 2 hours 35 minutes a week doing so, compared with 1 hour 50 minutes for online film viewers and 51 minutes for video clip viewers.
Overall advertising on the Internet and mobile phones increased, like-for-like, by 16.6% or £467 million to £3.46 billion in the first half of 2014 – up from £3.0 billion in the first half of 2013.
Content and "native" advertising spend –including paid for sponsorships, advertisement features and in-feed distribution – hit £216 million, accounting for 21% of digital display advertising. Social media ad spend grew 73% to £396.0 million, with 53% (£209.7 million) allocated to mobile. Among media owners who submitted revenue figures to the IAB/PwC, tablet-dedicated advertising grew 160% to reach £29.0 million; up from £10.5 million.
Commenting on the research, Tim Elkington, Chief Strategy Officer at the UK's Internet Advertising Bureau said: "A third of online viewers, particularly 35-44 year olds, are watching more TV, films and clips online than a year ago. Consequently, video now accounts for £1 in every £5 spent on internet and mobile display ads...Average weekly viewing online amounts to 25 videos, four to five TV episodes and one film but what's most interesting is that watching video on connected devices is becoming an increasingly social activity, like traditional TV. Half of people watching TV, films or video clips online do so with family members and three in ten watch with friends." inShare0