Breaking research : Retail to drive UK digital ad spend through 2018

The UK’s largest industry sector for digital ad spending—retail—will drive the country’s overall digital ad spending gains through 2018, according to eMarketer’s first ever forecast of cross-industry UK ad spend. But retailers won’t be alone in upping digital investment.

Among the five industries in the UK tracked by @eMarketer automotive, consumer packaged goods (CPG) and consumer products, financial services, retail and travel—retail will continue to lead in share of overall digital ad spend through 2018, aided by the largest spending gains among industries both this year and next.

For a deeper dive into eMarketer’s UK industry ad spending estimates, see their August 2017 report, “UK Digital Ad Spending by Industry: Forecasts and Trends.” Subscribers to eMarketer PRO can access the report here. Nonsubscribers can purchase the report here.)

Thanks to the growth of ecommerce in the UK—especially in the food/grocery sector—and the resulting competition between merchants for digital shoppers, retail will account for a leading 14.2% of all digital ad spend in 2017, with investment up 13.4% to £1.55 billion.

Mobile advertising will drive the sector’s digital advertising growth, with investment ballooning by 31.0% to reach £1.04 billion this year. As a result, mobile will represent over two-thirds of retailers’ digital ad outlays in 2017.

“The retail sector has a wide array of product categories, ranging from household staples such as groceries to highly popular consumer electronics and gadgets,” said Monica Peart, eMarketer’s senior forecasting director.

“This helps to not only push retail ad spending above other sectors, but also makes it one of the fastest growing categories with pure-play ecommerce giants such as Amazon pushing advertising investments online and on mobile, where the shopper is increasingly making purchase decisions.”

The other core industries in the UK tracked by eMarketer will also increase their digital ad spending in 2017, albeit by slightly more modest levels.

As with retail, these industries will also see mobile ad spending swell by more than one-quarter in 2017, with increases ranging from 27.0% for travel to 30.0% for automotive.

#Retail is the #UK‘s largest industry sector for digital #ad spending: https://t.co/pRzbMfinCv pic.twitter.com/rYspSQg5vJ

— eMarketer (@eMarketer) August 29, 2017