UK retail media jumps 32% to £2bn in first half of 2026
UK retail media spending rose 32% year-on-year to £2bn in the first six months of 2026, according to IAB UK’s Digital Adspend Study H1 2026. The growth outpaced the wider UK digital advertising market, which increased 13% to £21.2bn in the same period.
Video advertising climbed 18% to £5.1bn, while search remained the largest channel at £9.1bn after a 10% rise. Display advertising added 9% to reach £3.1bn, putting retail media ahead of gaming (£0.7bn), digital out‑of‑home (£0.5bn) and classified advertising (£0.5bn). The study also noted that 70% of advertisers cited economic uncertainty as a top challenge, with AI and automation (37%) and measurement (30%) following. Connected TV advertising via internet‑connected devices reached £1.7bn in H1 2026, up 22% year on year. Mediasense forecasts that UK digital advertising will grow 12% across 2026 to £45.2bn before moderating to 10.5% growth in 2027.
“Retail media’s 32% growth confirms that commerce data is no longer just a bottom-funnel targeting tool; it’s becoming a strategic layer across the whole customer journey,” Rob Ishag, UK country manager at TripleLift said.
Before this period, retail media was considered a fast‑growing niche, but the £2bn milestone shows it has become a major growth driver.
What we know
Retail media grew 32% YoY to £2bn in H1 2026.
UK digital advertising grew 13% to £21.2bn in H1 2026.
Video advertising increased 18% to £5.1bn in H1 2026.
Search advertising rose 10% to £9.1bn in H1 2026.
Display advertising grew 9% to £3.1bn in H1 2026.