Digital advertising could add 1.2 million jobs to UK economy by 2035

The digital advertising industry has grown 10 times faster than the overall UK economy in the last four years, according to new IAB UK data.

· Marketing Week

By Niamh Carroll 23 Sep 2026 12:35 pm

The digital advertising sector has grown its contribution to the UK economy by 35% in just four years, according to research commissioned by IAB UK.

In 2022, IAB UK found digital advertising contributed £129bn to the UK economy. In 2026, this figure is estimated to be £175bn, meaning digital advertising is contributing an extra £46bn to the UK economy, versus four years ago.

The growth rate of the digital advertising industry is 10 times higher than the UK economy as a whole.

There are now 2.6 million jobs supported by the digital advertising industry in the UK, equivalent to 8% of the total workforce. This has increased from 2 million in 2022. 

UK ad spend up 9.3% as market set to hit £50bn by year end

The research commissioned by IAB UK and carried out by research consultancy Public First, estimates UK advertising could add an extra 1.2 million jobs to the market by 2035. The data also suggests the sector could contribute £242bn to the economy within nine years.

While digital advertising has the potential to bring plenty of incremental jobs and value to the UK economy, the authors of the research warn this will only happen in the right policy environment. 

In terms of particular areas for future growth, the report finds agentic advertising buying could generate a £13bn sales uplift for UK businesses by 2035. The research also finds strong growth potential for the creator sector, forecasting the UK creator economy could grow from £800m in 2025 to £12bn over the coming decade.

A big impact for SMEs

The ad industry drives economic growth for the UK, but it also creates commercial impact for the advertisers themselves. 

The report finds digital advertising spend drives £118bn in sales growth for UK businesses every year. AI could play a significant role in making that figure even higher, with the research estimating a 10% AI-driven improvement in return on advertising spend could generate £80bn in additional sales for UK businesses over the next decade. 

Of the £118bn in sales growth driven by digital advertising, £53bn of that is going to SMEs. That figure has more than doubled in just four years, from £26bn in 2022.

The total SME economic footprint of digital advertising now stands at £74bn, according to the research. The sector also supports 1.3 million jobs within SMEs.