Table of Contents
Executive Summary
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- Digital advertising expenditure tops £8 billion
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- Figure 1: Forecast of digital advertising expenditure in the UK, 2010-20
- Video and social now core components of digital advertising
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- Figure 2: Digital advertising formats noticed by consumers in the last three months, December 2015
- Smartphone advertisers face a struggle to engage users
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- Figure 3: Attitudes towards smartphone advertising, December 2015
- Unclear targeting methods cause unease
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- Figure 4: Attitudes towards digital advertising, December 2015
- Majority would still pay for ad-supported media services
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- Figure 5: Amount consumers would be willing to pay for monthly media subscriptions without advertising, December 2015
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- Figure 6: Amount consumers would be willing to pay for monthly media subscriptions with advertising, December 2015
- What we think
Issues and Insights
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- Tackling the threat of ad blockers
- The facts
- The implications
- Privacy vs personalisation
- The facts
- The implications
The Market – What You Need to Know
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- Digital advertising expenditure tops £8 billion
- Paid search accounted for more than half of expenditure in 2014
- Digital leads the way
- Privacy infringements arouse concerns
- Nearly one in four people have used ad blockers
Market Size and Forecast
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- Digital advertising expenditure tops £8 billion
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- Figure 7: Digital advertising expenditure in the UK, 2010-20
- Forecast
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- Figure 8: Forecast of digital advertising expenditure in the UK, 2010-20
Segment Performance
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- Paid search accounted for more than half of expenditure in 2014
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- Figure 9: Segmentation of digital advertising expenditure in the UK, 2014
- More than £1 in every four spent on digital advertising is now mobile
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- Figure 10: Digital advertising expenditure and mobile advertising revenue in the UK, 2010-14
Market Drivers
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- Digital leads the way
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- Figure 11: Advertising expenditure, by media channel, 2014
- Privacy infringements wake concerns
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- Figure 12: Concerns relating to online data/security, November 2014
- Nearly one in four people have used ad blockers
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- Figure 13: Online security services installed/used in the last 12 months, November 2014
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- Figure 14: Screengrab of a website loading in Safari with (right image) and without (left image) Crystal installed, 2015
- Real-time bidding provides instant engagement
Key Players – What You Need to Know
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- Programmatic allows brands to hit the right note
- Cross-channel advertising
- Social media brands enhance their advertising platforms
- Empowering users
Brand Activity and Innovations
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- Programmatic allows brands to hit the right note
- Cross-channel advertising
- Social media brands enhance their advertising platforms
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- Figure 15: Interactions with social media advertising, September 2015
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- Figure 16: Awareness of what is online advertising, 2014
- Empowering users
- Costa brews up geo-location campaign
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- Figure 17: Experience of location-based mobile marketing, 2013-14
The Consumer – What You Need to Know
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- Video and social now core components of digital advertising
- Overcoming negative perceptions
- Personalisation appeases social media users
- Smartphone advertisers face a struggle to engage users
- Unclear targeting methods cause unease
- Majority would still pay for ad-supported media services
Digital Advertising Formats
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- Video and social now core components of digital advertising
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- Figure 18: Digital advertising formats noticed by consumers in the last three months, December 2015
- Young Millennials notice a larger range of formats
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- Figure 19: Digital advertising formats noticed by consumers in the last three months, by generation, December 2015
- Deal and activity seekers more receptive to digital ads
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- Figure 20: Digital advertising formats noticed by consumers in the last three months, by online activities performed in the last three months, December 2015
Perceptions of Advertising Formats
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- Overcoming negative perceptions
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- Figure 21: Perceptions of digital advertising formats, December 2015
- Over-55s alienated by digital ads
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- Figure 22: Perceptions of digital advertising formats (net), by age, December 2015
- Personalisation appeases social media users
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- Figure 23: Perceptions of social media advertising, by people who describe social media advertising as personalised, December 2015
Smartphone Advertising
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- Smartphone advertisers face a struggle to engage users
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- Figure 24: Attitudes towards smartphone advertising, December 2015
- Empowering Millennials
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- Figure 25: Agreement with attitudes towards smartphone advertising, by generation, December 2015
Attitudes towards Digital Advertising
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- Unclear targeting methods cause unease
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- Figure 26: Attitudes towards digital advertising, December 2015
- Social logins provide the gateway for advertisers
Online Media Services
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- Option of free sources limits media subscription uptake
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- Figure 27: Uptake of/interest in media subscriptions, December 2015
- Majority would still pay for ad-supported media services
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- Figure 28: Amount consumers would be willing to pay for monthly media subscriptions without advertising, December 2015
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- Figure 29: Amount consumers would be willing to pay for monthly media subscriptions with advertising, December 2015
- A sharing economy
Appendix – Data Sources and Abbreviations
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- Data sources
- Abbreviations
- Fan chart forecast
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- Figure 30: Best and worst case forecast of UK digital advertising expenditure, 2015-20
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