Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Growth despite disruption from the approaching GDPR
- Paid-for search makes up the majority of adspend
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- Figure 1: Forecast of digital advertising expenditure in the UK, 2012-22
- Mobile advertising continues strong growth
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- Figure 2: Mobile adspend as a proportion of total digital expenditure, 2010-17
- Adapting to ad-blocking
- Drive for ad quality
- Brand safety a priority
- Header bidding makes programmatic more valuable
- Effects of the GDPR on ad targeting
- Companies and brands
- YouTube limits availability of advertising revenue
- Facebook expands its ad optimisation scheme
- Direct shopping links offered through Instagram
- The consumer
- Search ads most noticed
- Video advertising most noticed on mobile
- Almost half noticing ads engage with them in some way
- Users rarely share social media ads
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- Figure 3: Digital advertising formats noticed by consumers in the last three months, December 2017
- Figure 4: Digital mobile advertising formats noticed by consumers in the last three months, December 2017
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- Figure 5: Actions taken in response to online ads noticed in the last three months, December 2017
- Online media offers more flexibility for video advertising
- Social feed and static ads share similar attributes
- Few willing to share data with advertisers
- Managing ad preferences on sites
- The issue of brand safety
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- Figure 6: Consumer response to digital advertising, December 2017
- Ad-blocking prevalent, but these users are valuable
- Almost half accept ads for free content
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- Figure 7: Consumer reactions to and attitudes towards digital advertising, December 2017
- What we think
Issues and Insights
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- User experience key to ad acceptance
- The facts
- The implications
- The battle against indiscriminate data tracking
- The facts
- The implications
The Market – What You Need to Know
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- Growth despite disruption from the approaching GDPR
- Paid-for search retains the majority of expenditure
- Spend on mobile advertising continues to grow
- Digital advertising revenue adapts to ad-blocking
- Drive for better-quality ads
- Programmatic enters a new phase with header bidding
- The GDPR
Market Size and Forecast
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- Growth despite disruption from approaching GDPR
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- Figure 8: Forecast of digital advertising expenditure in the UK, 2012-22
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- Figure 9: Forecast of digital advertising expenditure in the UK, 2012-22
- Forecast methodology
Market Segmentation
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- Paid-for search retains the majority of expenditure
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- Figure 10: Digital adspend market breakdown, 2010-17
- Spend on mobile advertising continues to grow
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- Figure 11: Mobile adspend as a proportion of total digital expenditure, 2010-17
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- Figure 12: Self-reported app category use amongst app users, July 2017
Market Drivers
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- Digital advertising revenue adapts to ad-blocking
- Drive for better quality ads
- CBA begins Better Ads Experience Programme
- Desktop
- Mobile
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- Figure 13: Examples of mobile ad types proscribed in the Better Ads Experience Programme.
- Chrome crackdown on ads
- Brand safety a priority for the advertising market
- Publishers must balance providing an open platform with being advertiser-friendly
- Stop Funding Hate – A powerful pressure group that can influence editorial content
- A lasting role for native advertising and influencer marketing
- Programmatic enters a new phase with header bidding
Regulatory and Legislative Changes
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- The General Data Protection Regulation (GDPR)
- Consent
- Legitimate interest
Companies and Brands – What You Need to Know
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- YouTube gets strict on advertising access
- Amazon launches Transparent Ad Marketplace (TAM)
- Spotify Ad Studio expands to the UK
- Facebook launches ‘trip consideration’ ad strategy
- Direct shopping links offered through Instagram
Launch Activity and Innovation
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- YouTube gets strict on advertising access
- Amazon launches Transparent Ad Marketplace (TAM)
- Spotify Ad Studio expands to the UK
- Facebook launches ‘trip consideration’ ad strategy
- Direct shopping links offered through Instagram
The Consumer – What You Need to Know
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- Search engine advertising most-noticed format
- Video advertising the most-seen format on mobile
- Almost half noticing ads engage with them in some way
- Advertisers must balance ad intrusion with value for money
- Less than one in five willing to share personal data with advertisers
- Brand safety is a real issue
- Mobile ad-blocking less common than PC
- Users reject sites with intrusive ads
Advertising Exposure
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- Search engine advertising most-noticed format
- Video advertising the most-seen format on mobile
- Mobile social ads overtake pop-up and banner ads
- Advertisers must consider transparency when sponsoring posts
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- Figure 14: Digital advertising formats noticed by consumers in the last three months, December 2017
- Figure 15: Digital mobile advertising formats noticed by consumers in the last three months, December 2017
Advertising Engagement
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- Almost half noticing ads engage with them in some way
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- Figure 16: Actions taken in response to online ads noticed in the last three months, December 2017
- Engagement highest amongst younger internet users
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- Figure 17: Any reported action taken in response to online ads noticed in the last three months, by age, December 2017
- Users rarely share social media ads
Digital Advertising Correspondence Analysis
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- Methodology
- Advertisers must balance ad intrusion with value for money
- Online media offers more flexibility for video advertising
- Social feed and static ads share similar attributes
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- Figure 18: Attributes associated with types of adverts – Correspondence analysis, December 2017
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- Figure 19: Attributes associated with types of adverts – Correspondence analysis, December 2017
Data Sharing and Targeted Advertising
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- Less than one in five willing to share personal data with advertisers
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- Figure 20: Consumer response to digital advertising, December 2017
- Social media users do manage their ad preferences
- Brand safety is a real issue
The Consumer-Advertiser Relationship
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- Mobile ad-blocking less common than PC
- Almost half accept ads for free content
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- Figure 21: Consumer reactions to and attitudes towards digital advertising, December 2017
- Ad-block users see and interact with more ads
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- Figure 22: Digital advertising formats noticed by consumers in the last three months, by ad-block users vs non-users, December 2017
- Users reject sites with intrusive ads
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market forecast
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- Figure 23: Forecast of digital advertising expenditure in the UK, 2012-22
- Forecast methodology
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