Digital will account for roughly half of all advertising spend in 2015, representing more than £8 billion of revenue over the course of the year.
Research from Strategy Analytics found that digital solutions will result in a 9.5 per cent rise in digital spend compared to a 1.6 per cent increase in traditional advertising.
It appears that more and more businesses are identifying the potential benefits of digital advertising and choosing to invest in the channel instead of popular alternatives such as content, SEO and email marketing.
What types of marketing are proving popular?
The findings highlight mobile, social media and video advertising as being some of the most popular channels and, by 2018, it is believed that digital advertising will account for 56 per cent of the UK market.
Overall spending in the sector is expected to increase by 5.4 per cent this year, meaning total revenue will rise to roughly £15.8 billion for the year. This increase will occur around two-thirds faster than rises in other regions of Europe and the US.
Due to a 4.8 per cent rise in cinema advertising and a three per cent jump in TV ad revenue, the market is anticipated to grow substantially over the course of 2015.
Report author Michael Goodman said: “Digital crossing the 50 per cent share threshold is a seminal moment in the history of the ad industry, particularly factoring in its dominance in the UK compared to globally.”
Advertising in Western Europe and the US
Even though digital advertising is proving popular in the UK, it only accounts for a third of ad spending across Western Europe.
However, this figure is still ahead of the global average, which currently stands at 30 per cent.
In the US, digital represent only a quarter of ad spending and TV is regarded as the strongest format. Companies still find success in big-budget advertisements across the Atlantic and it will be interesting to see if this will change in the near future.
How can businesses plan their marketing budget?
Companies should ensure their marketing budget plays to their strengths.
If a business has developed a strong reputation for developing engaging written content, money should be made available to continue this.
On the other hand, if competitors are struggling in email marketing, it could represent the perfect opportunity to gain an upper hand. Spend more money in this area to make your email campaigns as engaging as possible and you could gain an even larger market share.