Member content
Already a member? Sign in below
Preliminary estimates show the UK’s ad market was worth £40.7bn in 2024, a rise of 11.2% year-on-year
London, January 30, 2025: The latest quarterly data from the Advertising Association and WARC’s Expenditure Report show UK ad spend rose 9.7% to £10.6bn during the third quarter of 2024. This marks the first time ad spend has exceeded the £10bn barrier in Q3, largely attributed to improved performance for search and robust growth for other online formats.
The UK advertising market is forecast to have grown by 11.2% overall in 2024, an upgrade of 0.6 percentage points (pp) from the October forecast, with full year spend expected to reach £40.7bn. Channels expecting to see a strong 2024 include: Online Display (+18.9%), Search (+12.7%), Broadcaster Video On-Demand (+12.4%) and Out of Home (+10.3%), with final figures for full year 2024 due to be published in late April.
Looking ahead, AA/WARC anticipates additional growth of 6.9% in 2025, by when the UK’s ad market will be worth £43.5bn. Considering the wider economic backdrop, UK ad spend is set to continue to outperform the UK economy, even in real terms, with the advertising market expected to show real terms growth of 8.5% in 2024 and 4.5% in 2025.
A deep dive into the Q3 2024 results
In spite of stagnant economic conditions for UK growth, the Q3 period saw a 9.7% rise in UK ad spend, performing 1.4pp ahead of expectations from the previous forecast in October. AA/WARC largely attributes this additional growth to an improved performance for Search (including retail media) which was up 12.6% to £4.6bn.
Other online formats also recorded robust growth in Q3, including Online Display (+15.2%), Online Radio (+10.0%) and Broadcaster Video On-Demand (+8.7%) – with live sport content a key feature of the July to September period, through the Olympics and Paralympics as well as the Men’s Euros, with England successfully reaching the final on July 14. Direct Mail had a particularly strong quarter (+12.9%), marking a return to growth for the channel for the first time in just over two years, and Radio performed ahead of expectations (+3.8% against expected growth of 3.0%).
Overall in the Q3 period, advertisers within two categories spent more on media: Financial (+6.9%) and Consumables (+4.0%) which includes household FMCG, cosmetics, and food and drink. Of the latter, household FMCG (+21.0%) and food (+7.6%) were the key growth drivers.
Expectations for 2025
Looking to 2025, the UK’s advertising market is expected to be worth £43.5bn, an increase of 6.9% and an uplift of 0.4pp from October’s forecast. Channels expecting to see a rise this year include BVOD (+12.9%) and Online Display (+9.4%), which encompasses social media. Furthermore, a return to growth is expected for Cinema (+4.7%), Online Classified (+2.5%), and Online Magazine Brands (+1.3%).
Stephen Woodford, CEO, Advertising Association, said: “While there is much work to do to kickstart growth in the UK economy, we know investment in advertising produces a fantastic return. It supports competition, innovation and jobs up and down the country, with fresh evidence for this to be previewed at the AA, IPA and ISBA’s LEAD conference next month. The new Ad Pays 2025 report will make a compelling case for how advertising is a vital engine of the UK economy.
“It is also important to reflect on how policy decisions can impact the planning of advertising campaigns, such as through the delayed resolution of the Less Healthy Foods regulation. This is a clear example of where businesses require certainty to have the best chance to deliver growth.”
James McDonald, Director of Data, Intelligence & Forecasting, WARC said: “Online ad formats, benefitting from the widespread adoption of new AI tools, have propelled the UK ad market to exceptionally strong growth so far in 2024 and will continue to drive expansion into 2025. However, economic uncertainty remains at both a local and global level. As a new US president comes into office, attention will be focussed on implications for the world economy. In the UK, advertising businesses will look to the UK Government’s growth strategy and how it will affect the industry. A deterioration in overall business confidence could lead some marketers to depress spend in the short term.”
| Media | Q3 2024 year-on-year % change |
YTD 2024 year-on-year
% change |
FY 2024 forecast year-on-year % change | Percentage point (pp) change in forecast vs October | FY 2025 forecast year-on-year
% change |
| Search | 12.6% | 13.1% | 12.7% | +1.7pp | 8.5% |
| Online display* | 15.2% | 20.2% | 18.9% | +0.1pp | 9.4% |
| TV | -2.6% | 2.4% | 0.4% | -0.5pp | -0.1% |
| of which BVOD | 8.7% | 14.1% | 12.4% | +0.3pp | 12.9% |
| Out of home | 4.4% | 12.0% | 10.3% | -1.7pp | 7.2% |
| of which digital | 7.7% | 16.1% | 13.7% | -1.3pp | 8.1% |
| Direct mail | 12.9% | 2.6% | 0.8% | +3.7pp | -2.8% |
| Online classified* | -13.5% | -16.2% | -15.6% | -0.2pp | 2.5% |
| National newsbrands | -5.7% | -4.7% | -4.6% | -0.6pp | -2.0% |
| of which online | 2.1% | 1.5% | 1.6% | +0.3pp | 0.9% |
| Radio | 3.8% | 4.6% | 4.2% | +0.3pp | 3.4% |
| of which online | 10.0% | 5.6% | 6.6% | +0.3pp | 6.0% |
| Magazine brands | -16.9% | -6.8% | -6.1% | -2.4pp | -0.9% |
| of which online | -14.8% | -3.6% | -3.2% | -3.5pp | 1.3% |
| Regional newsbrands | -1.6% | -1.4% | -1.3% | +0.7pp | -0.7% |
| of which online | 4.9% | 3.0% | 3.9% | +1.1pp | 1.5% |
| Cinema | -26.1% | -16.0% | -9.5% | -7.4pp | 4.7% |
| TOTAL UK AD SPEND | 9.7% | 12.2% | 11.2% | +0.6pp | 6.9% |
| Note: Broadcaster VOD (BVOD), digital revenues for newsbrands, magazine brands, and radio broadcasters are also included within online display and classified totals, so care should be taken to avoid double counting. Online radio includes targeted in-stream radio/audio advertising sold by UK commercial radio companies, together with online S&P inventory. Source: AA/WARC Expenditure Report, January 2025 |
|||||
The quarterly Advertising Association/WARC Expenditure Report is the definitive guide to advertising expenditure in the UK, with data for all key advertising media and sub formats dating back to 1982 and forecasts spanning eight quarters ahead.
Already a member? Sign in below
If your company is already a member, register your email address now to be able to access our exclusive member-only content.
If your company would like to become a member, please visit our Front Foot page for more details.
Enter your email address to receive a link to reset your password
Your password needs to be at least seven characters. Mixing upper and lower case, numbers and symbols like ! " ? $ % ^ & ) will make it stronger.
If your company is already a member, register your account now to be able to access our exclusive member-only content.