Advertising is driving business growth across the UK with 3.5 million UK businesses investing an estimated £66.6bn in advertising in 2024.

According to the Advertising Pays 2025 report, created by advertising think tank Credos, the advertising industry is contributing a record amount to the UK economy, primarily through advertising investment, which it measures through the Gross Value Added (GVA) to the economy and employment. 

The research reveals that in 2024, 3.5 million businesses spent an estimated £66.6bn on advertising, including £42.6bn on media, £7.4bn on agencies and production, and £16.6bn on marketing professionals. 3.5 million out of 5.5 million businesses in the UK rely on services provided by the advertising sector.

On average, £1 spent on advertising now generates a profit ROI of £4.11 for medium-large businesses and £1.89 for micro-small businesses.

Advertising supports 5% of all UK employment

According to the research, advertising directly funds a broad range of roles across the UK’s media and digital industries, with £42.6 billion of employment being generated through businesses’ advertising investment. This equates to 5% of all UK employment being supported by advertising and marketing. 

The research points to the fact that advertising remains the ‘currency’ which funds and supports many valued UK industries and services, such as TV and radio programming, journalism, cinema and streaming services. Online tools such as maps, search and educational content would also be significantly more expensive without advertising income.

Notably, the report also revealed that 60% of advertising and marketing jobs were based outside of London. The North West is the largest hub outside of London, accounting for 12% of UK employment, followed by the South East (11%) and Yorkshire and Humber (8%).

Since 2017, there has been a change in the distribution of the advertising and marketing workforce, with a decline in London-based professionals, which reduced by 3 percentage points.

In contrast, the proportion of advertising and marketing professionals in the North West increased from 8% in 2017 to 12% in 2024. This growth is largely driven by increased employment in Manchester and Leeds, while Liverpool and Sheffield also entered the top 10 city hubs for the first time in 2024.

Overall, the advertising and marketing industries are experiencing a record amount of growth, now contributing £109 billion of GVA to the UK economy in 2024. This means advertising now represents 4% of total UK GVA.

The report highlights influencer marketing and the rise of e-commerce as key growth areas. The market was estimated to be worth £828 million in 2023, with spend anticipated to reach £1 billion in the UK by the end of 2026.

E-commerce is a key area for growth, with the UK’s share of e-commerce in retail sale goods at 30%, the highest in the world.

The UK’s overseas influence was also clear with £17.9bn worth of UK advertising services being exported in 2024, second only to the US.

Dan Wilks, Director at Credos, explained: “Advertising Pays 2025 reflects on the first quarter of this century and shows the full scale of advertising’s value to the UK’s changing economy. This report not only demonstrates advertising’s economic impact, but its unique position within the creative and professional services, contributing a record amount of GVA towards the UK economy.” 

He continued: “Advertising Pays 2025 highlights how advertising is continuing to thrive across all mediums, from out of home to social media, to e-commerce. Advertising is increasingly innovative and adaptable, and our industry’s world leading creative talent is proof of this.”

Andria Vidler, President of the Advertising Association, added: “This new Advertising Pays report contains a valuable set of messages for us all to share about what our industry contributes and provides many answers to those who ask what value the advertising industry brings to the UK. To my mind though, these messages not only serve as a baseline to grow from, but they can also be used as a springboard for action to go further and help more businesses and organisations to grow sustainably, to support growth, jobs and exports, all for the long-term.”