UK AD SPEND ROSE 11.4% TO £12.5BN IN Q3 2025
Published: 29 Jan 2026
Latest forecasts predict ad spend will exceed £50bn for the first time in 2026.
London, January 29, 2026: The latest Advertising Association/WARC Expenditure report has found that UK advertising spend rose by 11.4% to £12.5bn in Q3 2025.
New forecasts, published today, also show that total ad spend is estimated to have risen by 10.1% to £46.9bn during 2025 as a whole and is set to rise a further 7.5% to exceed £50bn in 2026, although this is in the face of wider economic uncertainty.
Q3 2025 in depth
The figures provide the latest picture for advertising expenditure from July to September 2025, with AA/WARC estimating that search and online display formats accounted for 83% of total ad spend in the period, rising 14.6% year-on-year.
Cinema saw the fastest growth, up by 23.9%, due to popular releases such as The Fantastic Four: First Steps, The Conjuring: Last Rites and Downtown Abbey: The Grand Finale.
Further growth is seen in online radio, which rose 19.2%. This aligns with RAJAR data, which revealed a record 56% share of commercial radio listening, driven by increased digital listening through apps and smart speakers, boosting reach for advertisers.
Major sports events attracted large, engaged audiences in the summer months, driving the use of ad-supported streaming platforms and causing Video On-Demand (VOD) to rise 17.0% in Q3. This boost in both linear TV and VOD was caused by events such as the FIFA Club World Cup and the success of England’s women’s teams in both the UEFA Women’s Euro Championships and the Rugby World Cup. Out-of-Home (4.4%) also saw a positive quarter, spurred by rising digital OOH spend (3.3%).
Overall, the latest figures show that ad spend for the Q1 to Q3 2025 period increased 9.8% to £34.5bn.
Projections for FY 2025 and 2026
For FY 2025, AA/WARC predicts growth of 10.1% to £46.9bn, the fifth consecutive year of market expansion. Looking ahead, advertising spend is expected to increase 7.5% to exceed £50bn for the first time in 2026.
TV VOD is forecast to see the most growth (13.8%) in 2026, boosted by major sporting events such as the FIFA World Cup, which offers an opportunity for community engagement.
Search (10.2%), online display (8.4%) and online radio (7.3%) are set to continue recording gains, whilst OOH is also expected to end 2026 in positive territory, alongside online national and regional newsbrands.
The wider economic backdrop is muted, however, reflecting ongoing domestic headwinds such as slow real household income growth and a loosening labour market. Additionally, domestic and international political uncertainty will continue to weigh on the UK’s overall economic outlook.
Stephen Woodford, CEO, Advertising Association, said: “These latest figures underline once again how businesses of all sizes and shapes invest in advertising to help them grow. Whether it is an SME or a multi-national organisation, the spend on advertising supports innovation, competition and job creation. This data reflects the valuable audiences around major sporting events, showing how the public still enjoy shared experiences, which advertising can enhance through engaging and positive storytelling.”
James McDonald, Director of Data, Intelligence & Forecasting, WARC, said: “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. Strong double-digit growth in 2025 reflects a continued focus on performance, reach and association with culturally relevant moments, from major sporting events to unmissable live concerts.
“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. |
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*For HY 2025, IAB UK has partnered with Oliver Wyman to deliver its Digital Adspend study. This new collaboration introduces an updated methodology, with all reported data beginning from HY 2025. As a result of this methodological change, it is not possible to reconcile data for search, online display and online classifieds with previous editions.
ENDS
For more information, please contact:
Advertising Association
Matt Bourn, Director of Communications
Mariella Brown, Head of Policy Communications
WARC
Amanda Benfell, Head of PR & Press
T: +44 (0) 20 7467 8125
About the Advertising Association/WARC Expenditure Report
The Advertising Association/WARC quarterly Expenditure Report is the definitive guide to advertising expenditure in the UK. Impartial and independent of any media channel or agency affiliation, it is the only source of historical quarterly ad spend data and forecasts for the different media for the coming eight quarters. With data from 1982, this comprehensive and detailed review of advertising spend includes the AA/WARC’s own quarterly survey of all national newspapers, regional newspaper data collated in conjunction with Local Media Works and magazine statistics from WARC’s own panels. Data for other media channels are compiled in conjunction with UK industry trade bodies and organisations, notably the Internet Advertising Bureau, Outsmart, Radiocentre and the Royal Mail.
All data are net of discounts and include agency commission but exclude production costs. The survey was launched in 1981 and has produced data on a quarterly basis ever since.
Methodology for WARC’s quarterly forecasts
Analysis of annual ad spend data over the past 35 years shows that there is a link between annual changes in GDP and annual changes in ad spend (after allowing for inflation, and excluding recruitment ad spend). Over this period, GDP changes account for about two thirds of the change in ad spend. WARC has developed its own forecasting model to generate forecasts for two years based on assumptions about future economic growth. The model provides an indication of likely overall spend levels – adjusted to allow for short-term factors (Olympics, World Cup etc).
The Expenditure Report (www.warc.com/expenditurereport) launched online in February 2010 and combines data from the discontinued print publications the Quarterly Survey of Advertising Expenditure and the Advertising Forecast. It is relied upon daily by the world’s largest brands, ad agencies, media owners, investment banks and academic institutions. Alongside over 200 readymade tables, subscribers can create their own customised tables for analysis of different media and time periods, as well as track the different media’s share of ad spend. All reports can be exported from the online interface. An annual subscription is priced at £760 for AA members and £1,175 for nonmembers.
About the Advertising Association
The Advertising Association promotes the role and rights of responsible advertising – trusted, inclusive and sustainable – and its value to people, society, businesses and the economy. Responsible businesses understand that there is little point in an advertisement that people cannot trust. That's why, over 50 years ago, the Advertising Association led UK advertising towards a system of independent self-regulation which has since been adopted around the world. There are nearly thirty UK trade associations representing advertising, media, and marketing. Through the Advertising Association they come together with a single voice when speaking to policy makers and influencers.
About WARC – The global authority on marketing effectiveness
For over 40 years WARC has been powering the marketing segment by providing rigorous and unbiased evidence, expertise and guidance to make marketers more effective. Across four platforms - WARC Strategy, WARC Creative and WARC Media – its services include 100,000+ case studies, best practice guides, research papers, special reports, advertising trend data, news & opinion articles, as well as awards, events and advisory services. WARC operates out of London, New York and Singapore, servicing a community of over 75,000 marketers in more than 1,300 companies across 100+ markets and collaborates with 50+ industry partners.
WARC is part of Informa Festivals, part of Informa PLC.
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