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 year-on-year % change |
Q1–Q3 2025 year-on-year % change |
FY 2025 forecast year-on-year % change |
Percentage point (pp) forecast diff vs October |
FY 2026 forecast year-on-year % change |
| 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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*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.
