Social media advertising in 2024: maximising impact in the UK market

by Smithfield

Executive summary

At a time when UK advertising spend has reached a record £9.2 billion in Q1 2024, marking a 9.3% increase year-on-year, the real challenge isn’t reaching audiences, it’s engaging them effectively.

And with 86% of UK consumers actively interacting with social ads and digital formats accounting for 79.7% of total UK ad spend, the opportunity is clear. Yet success in 2024 demands more than just presence; it requires a sophisticated balance of broad appeal and strategic targeting. Here’s what’s shaping the future of social media advertising in the UK…

The UK market: A story of growth and evolution

As social platforms mature and consumer behaviours evolve, the UK’s digital advertising landscape presents unprecedented opportunities. Recent IAB UK research reveals not just high engagement, but a fundamental shift in how Britons interact with social advertising:

86% of UK consumers now engage with ads on social media networks
Social ad investment reached £7.7 billion in 2023, showing 7.8% year-on-year growth
Digital formats dominate, accounting for 79.7% of total UK ad spend
Retail media spend is projected to exceed £1 billion by 2025 (excluding Amazon)

Consumer preferences and behaviours

Understanding the nuances of British consumer behaviour reveals important insights for marketers:

Advertising preferences

45% favour display ads
35% actively seek content from specific brand accounts
21% engage with influencer-led advertising

Trust and accountability

36% express decreased trust in social media ads due to fake news concerns
67% believe social platforms should be accountable for ad placement near unsafe content
Trust-building remains paramount for successful engagement

The UK social media landscape: 2024 insight

The latest IAB UK data illustrates the scale of opportunity:

Record-breaking Q1 2024 ad spend of £9.2 billion, up 9.3% year-on-year
Digital advertising dominates with 79.7% of total spend
Social ad investment reached £7.7 billion in 2023, showing 7.8% year-on-year growth
Emerging channels like retail media projected to exceed £1 billion by 2025

Strategic perspectives on audience engagement

Garett Farrell, Head of Planning at Smithfield Agency, offers valuable insight:

“While segmentation remains a valuable tool in our arsenal, we’ve observed that its effectiveness can vary significantly depending on the campaign and client. In our experience at Smithfield, we’ve found that sometimes a more unified approach to messaging can yield surprising results across diverse audience groups. It’s about finding the right balance between targeted strategies and broad appeal, always keeping the client’s specific goals in mind.”

The future of advertising

Farrell emphasises, “The future of advertising isn’t about avoiding ads; it’s about making ads that people want to see. In the UK, we have the chance to set the gold standard for what engaging, effective social media advertising can be.”

Sarah Coften, Head of Innovation and Digital Strategy at Smithfield Agency, adds:

“At Smithfield, we’re not abandoning segmentation entirely; we are becoming more discerning about when and how it’s applied. We’re committed to using all the tools at our disposal, including advanced analytics and AI, to determine the most effective strategy for each client. Sometimes that means highly targeted segmentation; other times it means crafting a message with universal appeal. The key is to remain flexible and let the data guide our decisions.”

The value of strategic understanding

These perspectives align with recent insights from Mark Ritson, a leading voice in marketing strategy. Ritson challenges conventional thinking about segmentation:

“It seems to me that marketers are looking for differences in their markets because people like me and others have told you, you should do that and it’s part of marketing. And so you do it. And when you look for differences, you can find a few differences but ultimately, if you step back, it’s pretty much all the fucking same.”

Ritson suggests that often, the most effective ad for one audience proves to be the most effective for all audiences, challenging decades of marketing orthodoxy.

Strategic framework for UK marketers

Strategic Audience Understanding: Utilise market research to identify broad patterns whilst avoiding over-segmentation. Focus on universal truths that resonate across demographics.
Balanced Targeting Approach: Blend broader messaging strategies with selective personalisation where it genuinely adds value. Not every campaign requires granular targeting.
Multi-Channel Amplification: Harness multiple channels to reach audiences naturally, without over-relying on hyper-targeting.
Creative Excellence: In the UK’s diverse digital landscape, compelling creative that resonates universally becomes the key differentiator.
Long term Brand Building: Develop strong brand assets and messages that work across audience groups, whilst selectively employing targeted activations where appropriate.

Data sources: IAB UK, “AA/WARC: UK ad spend reaches record £9.2bn in Q1 2024,” and “Digital 2024: The United Kingdom,” published 2024

Navigate the Future with Smithfield

In this dynamic landscape, staying ahead requires expertise, insight and adaptability. At Smithfield Agency, we combine deep industry knowledge with innovative thinking to help brands thrive in the evolving social media environment.

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