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July 2026: IAB UK’s 2025 ad spend figures and what they mean locally

Advertising performance statistics on a laptop
Photo: Carlos Muza on Unsplash

Covers July 2026. Part of our search timeline: a month-by-month look at the changes that shaped SEO, AI search, paid ads and social media, written in November 2026 for local businesses with the benefit of hindsight.

Quick answer: IAB UK’s Digital Adspend study put the value of UK digital advertising in 2025 at about £40.5bn. Paid search stayed the largest channel at roughly £17.9bn, while spend on social media rose 21% to £11.5bn, most of it on video. The numbers show search and social sit at the heart of UK paid advertising.

Those are national figures, dominated by big brands. But they still tell a local plumber, salon or removals firm where the competition for attention is heaviest.

What the July 2026 figures showed

The study, carried out with Oliver Wyman, showed digital advertising kept growing, and spend on social video rose especially quickly. Over the same summer, ChatGPT widened its advertising options.

What it means for local businesses

The figures show where the fight for customers’ attention is toughest. Search catches people who already need something, such as “emergency electrician near me”. Social and video build demand before people go looking. Both rely more and more on automation and strong creative.

How to plan your ad budget

  • Split budget sensibly between capturing demand through search and creating it through social and video.
  • Keep a regular flow of short videos for paid social, such as before and after clips from real jobs.
  • Judge every channel on cost per enquiry and return on spend, not on how many people saw an ad.

Frequently asked questions

How much goes on paid search in the UK?

According to IAB UK, paid search in the UK was worth about £17.9bn in 2025, around 44% of all digital ad spend.

Is spending on social ads still rising?

Yes. IAB UK reported that social ad spend rose 21% in 2025 to reach £11.5bn.

Sources and further reading

Want help with this? Our Google Ads service helps local businesses turn search budgets into booked jobs. Get in touch.

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