Digital ads added 175 billion pounds to the UK economy in 2026, Public First finds

Digital advertising supported 2.6 million jobs in the United Kingdom this year, a study by Public First for IAB UK says. That is 600,000 more than in 2022, and close to 8% of the workforce. The full report is published at iab.publicfirst.co.

Public First puts the 2026 contribution at 175 billion pounds

The study counts gross value added, the standard measure of what a sector adds to an economy. Digital advertising and the services it pays for reached £175bn in 2026. The same figure stood at £129bn in 2022. That is growth of 35% in four years. Public First says the sector grew about ten times faster than the UK economy as a whole.

Three scenarios for 2035 sit 72 billion pounds apart

The report models three paths to 2035. With rules that back investment and skills, it puts the sector at £242bn and 1.2 million extra jobs. The middle path lands at £195bn. The most restrictive path stops at £170bn. IAB UK uses that spread to press ministers for a lighter policy setting. The trade body has taken a similar line in Brussels, where IAB Europe is writing its own counting rules rather than waiting for regulators.

Smaller companies took 53 billion pounds of the revenue

Revenue tied to digital advertising at smaller companies came to £53bn, roughly double the 2022 level. Public First links 1.3 million jobs to that half of the market. The finding matters because small advertisers depend on self-serve platforms, and they have the least room to absorb rule changes.

95% of the 258 people surveyed already use AI

Public First surveyed 258 people working in the sector between 18 and 27 February 2026. Almost all of them, 95%, said their business already uses AI in digital advertising. Better productivity was reported by 82%, and 67% said profitability had improved. Those answers come from practitioners, not from audited accounts. Other UK measurement work has been more cautious, including the IPA finding that adults spend 44% of their commercial media time alone.

Public First also prices the AI effect. A 10% improvement in the return on advertising spend would mean about £80bn in extra sales for British companies. That single assumption rests on the same base of 258 survey answers.