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DIGITAL ADVERTISING - UK - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Media

No. of Pages : N/A

The digital advertising market is expected to continue its growth despite potential challenges to programmatic services from the GDPR. Indeed, the regulation may serve to actually improve consumer confidence in an industry which is being criticised over the indiscriminate collection of personal data. An industry-wide standard for ad quality is also gaining momentum which aims to remove the most disruptive advertising formats from sites, and it is hoped that this will tackle the root cause of why consumers choose to block advertising on their devices.

Table of contents

OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The market
Growth despite disruption from the approaching GDPR
Paid-for search makes up the majority of adspend
Figure 1: Forecast of digital advertising expenditure in the UK, 2012-22
Mobile advertising continues strong growth
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
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
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
Figure 6: Consumer response to digital advertising, December 2017
Ad-blocking prevalent, but these users are valuable
Almost half accept ads for free content
Figure 7: Consumer reactions to and attitudes towards digital advertising, December 2017
What we think
ISSUES AND INSIGHTS
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
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
Growth despite disruption from approaching GDPR
Figure 8: Forecast of digital advertising expenditure in the UK, 2012-22
Figure 9: Forecast of digital advertising expenditure in the UK, 2012-22
Forecast methodology
MARKET SEGMENTATION
Paid-for search retains the majority of expenditure
Figure 10: Digital adspend market breakdown, 2010-17
Spend on mobile advertising continues to grow
Figure 11: Mobile adspend as a proportion of total digital expenditure, 2010-17
Figure 12: Self-reported app category use amongst app users, July 2017
MARKET DRIVERS
Digital advertising revenue adapts to ad-blocking
Drive for better quality ads
CBA begins Better Ads Experience Programme
Desktop
Mobile
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
The General Data Protection Regulation (GDPR)
Consent
Legitimate interest
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
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
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
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
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
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
Almost half noticing ads engage with them in some way
Figure 16: Actions taken in response to online ads noticed in the last three months, December 2017
Engagement highest amongst younger internet users
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
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
Figure 18: Attributes associated with types of adverts – Correspondence analysis, December 2017
Figure 19: Attributes associated with types of adverts – Correspondence analysis, December 2017
DATA SHARING AND TARGETED ADVERTISING
Less than one in five willing to share personal data with advertisers
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
Mobile ad-blocking less common than PC
Almost half accept ads for free content
Figure 21: Consumer reactions to and attitudes towards digital advertising, December 2017
Ad-block users see and interact with more ads
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
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Market forecast
Figure 23: Forecast of digital advertising expenditure in the UK, 2012-22
Forecast methodology

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