Tuesday 30 April 2019 12:35 pm

Online advertising continues to grow as UK ad spend hits £24bn

Online formats are continuing to take the lion’s share of advertising pounds as UK ad spend hit almost £24bn last year, new figures have revealed.

Read more: WPP suffers sales drop after ‘significant’ client losses

Search and online display advertising pulled in almost £12bn in 2018, more than half of the total spend across all formats, according to the latest report by the Advertising Association (AA) and Warc.

The continued growth in online advertising was boosted by a surge in the video on demand format, which grew more than 29 per cent over the last year amid a shift in TV viewing habits.

The figures confirm an ongoing shift towards online and digital formats, as advertisers divert their focus away from traditional media.

A report published by Barclays Corporate Banking last month indicated spending on digital advertising will grow to more than £15bn in 2019, with digital out-of-home tipped to enjoy significant growth.

But overall forecasts remain cautious, with ad spend expected to slow to 4.8 per cent this year amid ongoing uncertainty around Brexit.

“These figures demonstrate, once again, the strength and resilience of the UK advertising industry during a time of political and economic uncertainty in the UK,” said AA chief executive Stephen Woodford.

Read more: UK digital advertising spend jumps to £13bn

“They are a testament to the world-class capabilities of the third of a million people working in advertising and marketing services across the UK.”