By Alavi Sumaia, Paid Media Manager at The MTM Agency
The UK digital advertising market continues to demonstrate remarkable resilience and growth. As an integrated digital marketing agency, we at MTM are seeing firsthand digital dominance in marketing and how businesses are adapting their strategies to keep pace with an evolving media landscape, leveraging new formats, programmatic sophistication, and AI-driven targeting.
In a similar vein, find out how Meta’s latest AI-enabled Andromeda update is reshaping creative performance on Facebook and Instagram, and read MTM’s dedicated analysis of why creative diversity now defines ad performance on Meta.
2025 was a year of strong digital growth
2025 reinforced digital’s dominance. According to figures reported by IAB’s half-year Adspend report, UK digital ad spend reached £18.7 billion, with mobile accounting for 71% of all investment, underscoring its central role in reaching audiences effectively. Search remains the largest single channel (£8.3bn, 44%), while video (£4.3bn) continues to rise, increasingly fueled by TV+/ CTV, which now accounts for more than a third of video spend.
Retail media emerged as a critical growth channel, hitting £1.5 billion in the first half of the year. This reflects how brands are investing closer to the point of purchase to drive measurable outcomes. Programmatic trading remains at the heart of the market, with automated buying making up 78% of digital display spend, ensuring campaigns can reach the right audience efficiently and at scale.
However, the traditional linear TV market showed signs of decline, pushing brands and agencies to rethink their media mix. This makes connected TV (CTV), digital out-of-home (DOOH), and premium online video non-negotiable channels for any campaign seeking reach and brand-safe engagement.
The role of AI in programmatic advertising
Also, according to IAB, AI-driven advertising is both an opportunity and a challenge. Generative tools, dynamic creative optimisation, and self-serve AI platforms are enabling brands to deliver personalised, efficient campaigns. Yet 56% of industry leaders still cite AI and automation as top challenges, citing concerns around transparency and algorithmic reliance. Measurement continues to be a core focus, with 31% highlighting fragmentation and the need for standardised attribution.
Forecast and future trends for 2026 and onwards
Looking ahead, according to the Advertising Association, UK digital ad spend is expected to reach nearly £50 billion by the end of 2026, with year-on-year growth of just over 8%. The next phase is being driven by:
CTV / TV+: premium, brand-safe environments with digital targeting flexibility.
DOOH and emerging formats: delivering measurable impact in high-traffic, high-visibility locations.
Programmatic sophistication: continued automation, transparency, and optimisation across channels.
AI-powered personalisation: driving more efficient campaigns while maintaining privacy compliance.
Retail Media: increasingly essential for purchase-driven campaigns.
The overarching trend is clear: brands and agencies must prioritise digital-first, data-driven channels while strategically integrating premium, measurable touchpoints like CTV and DOOH. Those who can balance innovation with accountability and performance will lead the market in the coming years.
Takeaway for brands and agencies looking ahead
As we plan for the second half of 2026, agencies must guide clients to invest in channels that offer transparency, measurable ROI, and premium inventory. Advertising trends forecasted suggest CTV, DOOH, retail media, and programmatic remain must-do tactics, while traditional linear TV continues its decline.
The lesson is simple: embrace innovation, leverage data intelligently, and optimise your digital media mix for both scale and impact. That’s how brands will thrive in the next phase of the UK’s advertising landscape.
At MTM, we have seen how integrating robust programmatic data strategies, multi-signal measurement, and a focus on quality inventory ensures campaigns not only perform but also remain accountable and scalable.
Book your complimentary digital media strategy consultation
As the landscape shifts towards CTV, DOOH, and increasingly sophisticated programmatic ecosystems, now is the ideal time to ensure your brand is fully prepared for the next phase of digital growth. Whether you’re looking to refine your programmatic approach, strengthen your CTV activation, or unlock new opportunities across DOOH, our specialists are here to support you.
We can find opportunities and help you build a future-ready strategy that delivers measurable performance across every channel. Book a consultation with us.