Digital advertising could add 1.2 million jobs to the UK economy by 2035, according to research commissioned by IAB UK and carried out by research consultancy Public First.

The sector has grown its contribution to the UK economy by 35% in just four years — a rate 10 times higher than the UK economy as a whole.

In 2022, IAB UK found digital advertising contributed £129bn to the UK economy. That figure is estimated to reach £175bn in 2026, meaning digital advertising is contributing an extra £46bn versus four years ago. By 2035, the research suggests, the sector could contribute £242bn.

The jobs picture has grown in step. Digital advertising now supports 2.6 million jobs in the UK, equivalent to 8% of the total workforce, up from 2 million in 2022. The research estimates UK advertising could add a further 1.2 million jobs to the market by 2035.

The authors of the research caution that this growth will only materialise in the right policy environment.

Two areas stand out as future growth engines. Agentic advertising buying could generate a £13bn sales uplift for UK businesses by 2035, the report finds. The creator sector shows strong potential too: the research forecasts the UK creator economy could grow from £800m in 2025 to £12bn over the coming decade.

The ad industry drives economic growth for the UK, but it also creates commercial impact for the advertisers themselves. Digital advertising spend drives £118bn in sales growth for UK businesses every year, the report finds.

AI could push that figure higher. The research estimates a 10% AI-driven improvement in return on advertising spend could generate £80bn in additional sales for UK businesses over the next decade.

SMEs are among the biggest beneficiaries. Of the £118bn in annual sales growth driven by digital advertising, £53bn goes to SMEs — a figure that has more than doubled in four years, from £26bn in 2022. The total SME economic footprint of digital advertising now stands at £74bn, and the sector supports 1.3 million jobs within SMEs.

For marketers and policymakers alike, the message is clear: the projected £242bn contribution and 1.2 million additional jobs by 2035 depend on whether the policy environment keeps pace with the sector's growth.