Latest data from AA/WARC shows steady growth in ad spend and predicts that 2026 will see new highs.
Total Ad spend is estimated to have risen to a total of £46.5bn during 2025, according to the latest figures from the Advertising Association/WARC Expenditure report.
In Q3 2025, UK advertising spend rose by 11.4%, reaching £12.5bn, resulting in optimistic 2025, and positive 2026 predictions despite wider economic uncertainty.
The latest figures show that ad spend for Q1 to Q3 2025 period increased 9.8% to £34.5bn. Largely driven by music and sporting events and strong cinema releases, spending was led by culture.
From July to September 2025, Cinema saw the fastest growth of any media category spend at 23.9%. Popular releases such as The Fantastic Four: First Steps, The Conjuring: Last Rites and Downton Abbey: The Grand Finale made for big box office results, and advertisers embraced the opportunity afforded by cinema.
Major sporting events such as the FIFA Club World Cup, the success of the England women’s teams at the UEFA Women’s Euro Championships and the Rugby World Cup drove advertisers to ad-supported streaming platforms and caused Video On-Demand (VOD) to rise 17.0% in Q3. Out-of-Home (4.4%) also saw a positive quarter, spurred by rising digital OOH spend (3.3%).
The largest chunk of spend was search and online display, which accounted for 83% of total ad spend in the period, rising 14.6% year-on-year. While online radio saw growth of 19.2%, driven by increased digital listening through apps and smart speakers, boosting reach for advertisers.
Following growth in spend in 2025, despite an uncertain macro-economic picture, AA/WARC predictions are positive. Advertising spend is expected to increase 7.5% to exceed £50bn for the first time in 2026.
For an industry driven by culture, major sporting events and anticipated cinematic releases are set to garner attention from audiences and advertisers alike. TV VOD is forecast to see the most growth at 13.8% in 2026, boosted by the likes of the FIFA World Cup.
Against a gloomy global economic backdrop, household income growth is slow and political uncertainty continues to loom.
“Despite a challenging economic backdrop marred by subdued household incomes, a softening labour market and ongoing geopolitical turmoil, the latest AA/WARC data suggest an enduring resilience across the UK’s advertising market,” says James McDonald, Director of Data, Intelligence & Forecasting, WARC.
He added: “That UK ad spend is on track to surpass £50bn for the first time this year underpins this conviction, with brands continuing to invest to stay competitive, build trust and engage audiences, even as the wider macroeconomic picture remains unfavourable.”
|
Media |
Q3 2025 |
Q1–Q3 2025 |
FY 2025 forecast |
Percentage point (pp) forecast diff |
FY 2026 forecast |
|
Search |
14.9%* |
14.3% |
14.5% |
+1.8pp |
10.2% |
|
Online display |
14.3%* |
12.3% |
13.3% |
+2.6pp |
8.4% |
|
TV |
0.7% |
-1.5% |
-2.3% |
+0.4pp |
2.8% |
|
of which VOD |
17.0% |
16.0% |
16.1% |
-0.8pp |
13.8% |
|
Out of home |
4.4% |
1.4% |
2.3% |
+1.0pp |
3.7% |
|
of which digital |
3.3% |
1.4% |
2.6% |
+0.5pp |
5.0% |
|
Online classified |
-2.0%* |
-4.1% |
-3.5% |
+0.1pp |
-1.7% |
|
Direct mail |
-3.2% |
1.6% |
0.8% |
0.0pp |
-1.5% |
|
Radio |
3.0% |
1.1% |
1.7% |
+1.5pp |
3.0% |
|
of which online |
19.2% |
15.6% |
15.2% |
+2.9pp |
7.3% |
|
National newsbrands |
-2.0% |
-5.1% |
-4.3% |
+0.4pp |
-1.1% |
|
of which online |
-1.2% |
-2.4% |
-1.7% |
-0.5pp |
0.7% |
|
Magazine brands |
-4.8% |
-5.6% |
-4.9% |
+0.2pp |
-1.7% |
|
of which online |
-3.1% |
-2.2% |
-1.9% |
-0.7pp |
0.1% |
|
Regional newsbrands |
-2.6% |
-5.8% |
-4.9% |
+0.6pp |
-0.2% |
|
of which online |
-0.6% |
-0.3% |
-0.1% |
+0.3pp |
2.3% |
|
Cinema |
23.9% |
20.5% |
17.0% |
+5.1pp |
0.2% |
|
TOTAL UK ADSPEND |
11.4% |
9.8% |
10.1% |
+1.9pp |
7.5% |
|
Note: Video on Demand (VOD), digital revenues for newsbrands, magazine brands, and radio are also included within online display and classified totals. Online classified also includes revenues for national and regional newsbrands, as well as B2B magazine brands. Care should be taken to avoid double counting these series. Online radio includes targeted in-stream radio/audio advertising sold by UK commercial radio companies, together with online S&P inventory. TV VOD includes broadcaster (BVOD), advertiser-funded (AVOD) and subscription (SVOD) services which include advertising. Source: AA/WARC Expenditure Report, January 2026 |
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