To more accurately reflect advertising investment in an evolving media landscape, The Advertising Association and WARC have today published a refreshed Advertising Expenditure Report.

The report has been updated following extensive industry collaboration to ensure that it captures a more accurate picture of media spend. 

The latest report reveals that UK advertising investment increased by 6.4% year-on-year in 2025 to reach £46.7 billion, with data showing £12.9bn was committed to media during Q4 alone. 

Reflecting a changing media ecosystem

In order to better reflect the media ecosystem of today, the report refreshes the definitions of media channels, in line with consultations with stakeholders from each channel. The revised figures draw from a survey of media owners and the industry bodies that represent them. 
The result of consultations is a new simplified reporting format. Retail media and social media are being presented as standalone channels for the first time, reflecting changes in the marketplace. 

The Advertising Association and WARC worked closely with representative industry bodies, including IAB UK, IPA, ISBA, Newsworks, Marketreach, Outsmart, the Cinema Advertising Association, PPA, Radiocentre and Thinkbox to redraw definitions to reflect the current landscape.

A refreshed outlook 

The refreshed report reveals updated figures, showing that across 2025, advertising investment increased by 6.4% year-on-year to reach £46.7 billion. 

Across categories, addressable TV (37.0%), social media (21.0%), retail media (17.5%) and online radio (14.9%), all experienced double-digit growth. Search continued to account for the biggest share of UK advertising investment at 38.3%, followed by social media at 24.7% and TV at 11.2%. 

In the Q4 festive period alone, total investment by advertisers reached £12.9 billion, an increase of 8.0% year-on-year.

The revised report is a reflection of the evolving media landscape and paints a more accurate, optimistic picture for the industry. To continue to match pace with the industry, AA/WARC is set to continue to work with stakeholders in further areas, including developing a clearer understanding of investment in the influencer/creator space and understanding Gen AI and LLM marketing. 

“The AA/WARC Expenditure Report has been a staple for practitioners for over four decades, and this latest iteration – developed in close consultation with industry stakeholders – ensures our investment benchmarks will continue to accurately reflect the pace of change in advertising trade for many years to come,” says James McDonald, Director of Data, Intelligence & Forecasting, WARC.

He adds “The result is greater clarity and transparency around media investment in the UK, to the benefit of both the media industry and the public at large.”