Why Video is Taking a Larger Share of UK Advertising Budgets

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Why Video is Taking a Larger Share of UK Advertising Budgets

Video is becoming an increasingly important part of advertising as it’s an engaging way to capture audiences across the digital platforms.

With people spending more time watching and engaging with video content online, advertisers are shifting more of their budgets towards this format to connect with new and existing audiences, promote their product and build brand awareness.

What’s the Driving Growth of Video Advertising?

There are many factors that contribute to the growth of video advertising, from user viewing habits to the continued growth of digital channels. More people are watching content across social media and streaming services so it’s important to shift budgets to reflect this.

IAB UK reported that video advertising in the UK has surged to £9.3 billion, growing by 20% year-on-year to capture 23% of the total digital advertising market.

Video vs Static Advertising

In the marketing world, companies face a lot of competition across the different  marketing channels. Grabbing users’ full attention often requires more than static graphics or writing captions. This is one of the reasons why video content has become one of the most powerful tools in digital marketing.

Video content includes all forms of moving visual media such as GIFs, animated graphics, long-form and short-form videos, all on platforms like YouTube, Instagram, and Tik Tok. Whereas a static post maintains a consistent visual composition, typically featuring a single image with a combination of text and visuals, designed to communicate a specific message or promote a product.

Incorporating video content into a marketing strategy is essential for a brand to stay relevant and visible.

Where Does Video Fit Within the Customer Journey?

Incorporating video into the customer journey is essential. Video content can be included in each stage to help enhance the user experience and push potential customers towards the end goal.

There are 4 stages of the customer journey which include:

Awareness – The point where the consumer becomes familiar with the brand.

Video at this stage helps brands reach new audiences and make a memorable first impression. It’s a chance to introduce the brand, showcase its personality and communicate key messages through visual storytelling.

Consideration – Where the consumer actively considers whether or not to buy the product or service on offer.

This is the perfect time to use video testimonials and FAQ style videos to help your audience understand why your product is the right solution.

Decision – The final decision is made and the transaction is complete.

Videos that show successful stories or real-life case studies are a great way to provide proof of the products value, allowing customers to make informed decisions.

Retention – The focus now shifts to whether the consumer continues to be an engaged and loyal customer.

Interacting with your existing customers will help create a sense of community and brand loyalty.

The key is to match the creative format, audience and campaign objective to each stage of the journey.

How Video Format & Audience Differ Across Different Channels

Not all video advertising works in the same way. Different platforms attract different audiences which results in different viewing behaviours and levels of engagement. So, it’s important to consider the format as well as where it will appear.

Social Media

Platforms such as Tik Tok, Instagram and Facebook are well suited to short-form videos that attract attention very quickly. Social video is particularly useful for reaching audiences based on their interests and behaviours plus driving traffic to a website or online shop.

With videos advancing, content needs to be creative and on trend as users can quickly scroll past ads that fail to engage them.

Online Video Platforms

Online advertising platforms, such as YouTube, give better flexibility in video length, placement and campaign objectives. It can range from short, skippable ads to longer-form content that contains more detail. Online video can support a range of goals, including brand awareness, product consideration and direct response, making it a versatile option within a wider digital media strategy.

Streaming Video

Streaming allows businesses to reach viewers watching streaming content through internet-connected TVs and devices. This type of advertising benefits from larger screens and is perfect for high-quality, creative brand storytelling.

As video takes a larger share of UK advertising budgets, the key questions for advertisers are: which platforms are growing and where is additional investment commercially justified?

When Might Simpler Format Work Better?

Simpler formats often work better on campaigns that are focused on immediate conversions, contain straightforward messages or audiences with clear purchase intent.

For example, audiences at the bottom of the funnel who are already familiar with a brand may not need extensive storytelling to make a decision.

Does a Bigger Video Budget Mean a Bigger Production Budget?

A bigger video budget does not automatically mean brands need to spend more on expensive productions.

The video budget represents the total cost of the entire project from concept to final video, where the production budget can refer to the cost of the actual filming time.

The right approach depends on what will resonate with the intended audience, rather than how much a brand can spend on production.

Ultimately, spending more on video doesn’t necessarily mean spending more on production. It’s about putting the budget where it will have the most impact, whether that’s creating the content, getting it in front of the right audience or testing what works best. A polished production is only worth the extra cost if it helps the campaign perform better.

Video is taking a larger share of UK advertising budgets as viewing habits change and platforms such as social media, online video and streaming services create more opportunities for brands to reach audiences. As this shift continues, advertisers will need to consider how video fits into their wider media strategies and where it offers the greatest value for their budgets.

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Written by

Paige Robinson is a Marketing Executives at Logic Design & Consultancy Ltd.specialising in paid social media. With agency experience under her belt, she enjoys strategising for different clients and working together with the team to brainstorm new ideas and execute them.

View all posts by Paige Robinson

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