Retail media spend up 12% in 2023 as digital landscape shifts 

While the UK economy grew just 0.1% in 2023, digital advertising made strong gains over the past 12 months.

Overall, the UK’s digital ad market grew 11% last year to £29.6bn, as brands invested more in digital channels such as connected TV (CTV), podcasts and retail media. 

Indeed, retail media spend grew 12% in 2023 to £283m, as advertisers looked to tap into first-party data ahead of the crackdown on cookies. These spend levels are expected to increase in the coming year, with Group M forecasting investment in retail media will grow 8.3% in 2024, with revenues last year estimated at $119.4bn (£96.3bn) globally. 

Podcast advertising also hit double digit growth (23%), as did CTV (21%) and digital out-of-home (12%), according to figures from the IAB and PwC’s Digital Adspend report released today (24 April).

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Social video, which includes ads on platforms such as TikTok, grew 20% last year. This reflects the growing need for advertisers to capitalise on online entertainment usage, and embrace “the diverse array of digital channels on offer,” says IAB UK CMO James Chandler, speaking on the report’s release.  

Mobile advertising spend also made gains, growing 15% to £16.7bn last year, a more than 10 percentage point increase on 2022’s 4% growth. 

“With the impending deprecation of third-party cookies, digital advertising is undergoing a shift and we know that the year ahead will reshape the industry in new ways. In that context, it’s encouraging to see advertisers seeking out engaged environments and increasingly investing in a broad array of online solutions,” Chandler adds.