Google and Facebook still dominate UK digital ad expenditure – mobile set to increase 27.4% in 2017

Google and Facebook are dominating the UK digital advertising landscape. According to the latest eMarketer forecast, the companies are earning more than half (54%) of all UK digital advertising revenues this year to a total £6.30 billion.

In 2017, Google’s UK digital ad revenues are estimated to reach £4.43 billion. That’s 38.8% of the overall UK digital advertising spend. eMarketer predicts that this figure will increase to £5.10 billion by 2019.

Meanwhile, Facebook is expected to generate £1.87 billion in digital advertising revenues in the UK in 2017. The social media network’s success is being boosted by Instagram, as well as its continued investments in video. Revenue growth is predicted to reach £2.57 billion in 2019 or 18.3% of the UK’s digital advertising market.

Overall, UK digital ad spend is estimated to reach £11.44 billion in 2017 – up 11% from 2016. Mobile continues to be a core driver of digital advertising growth, and expenditure could increase 27.4% this year. That also means mobile is now responsible for 36.6% of total UK digital ad spend. When it comes to mobile formats, video is seeing the strongest increase at 47.7%.

Traditional media expenditure continues to be rather flat in the UK. As marketers are shifting their focus toward digital properties, some declines in traditional formats are expected.

Bill Fisher, Senior Analyst at eMarketer, explains:

“There have been signs of tough times ahead for the UK ad industry. Despite uncertainty around Brexit and struggles among some of the big agencies, digital continues to attract ad spending, with Google and Facebook the biggest beneficiaries. That they’re attracting such spend is perhaps a symptom of the wider market concerns, with brands looking to get the biggest reach for their buck – something that Google and Facebook clearly offer.”