Strong momentum recorded across retail media, out of home, and social media as advertisers invest in a wide range of channels to reach audiences
London, July 30, 2026: The Advertising Association and WARC have today published the latest quarterly advertising Expenditure Report, revealing that UK advertising investment increased by 9.3% year-on-year in the first quarter of 2026, reaching a total of £11.7 billion.
The latest report – drawn from a survey of media owners and the industry bodies that represent them – highlights a diverse media landscape where advertisers are actively investing across a variety of established and emerging formats. The Q1 2026 figures show broad-based growth as businesses make the most of the full breadth of the UK’s advertising ecosystem.
Q1 2026 Performance
The new figures reveal a total investment by advertisers of £11.7 billion in media space during Q1 2026. Within this, digital formats have seen particularly notable increases, such as online radio (22.1%) and digital out of home (17.6%). Strong double-digit growth has also been recorded across retail media (17.9%), out of home (15.0%), social media (17.7%), and addressable TV (15.5%). Search (9.8%) continued to account for the largest share of the market, attracting £4.6 billion in investment during the quarter.
Further growth was recorded across direct mail (7.9%), radio (4.2%), digital magazine brands (2.9%) and online classifieds (0.5%), while total TV (0.8%) remained steady during the first quarter.
Looking ahead
AA/WARC forecasts predict an increase in advertising investment of 8.2% to a total of £50.5 billion in 2026. This momentum is expected to continue into 2027, with forecast growth of 5.9%, bringing total investment to £53.5 billion.
Stephen Woodford, Chief Executive, Advertising Association, said:
“The first quarter of 2026 demonstrated the continuing resilience and rapid evolution of the UK advertising industry. With a 9.3% increase in total investment reaching £11.7 billion, it’s clear that advertisers, large and small, are finding value across our entire advertising ecosystem, relying on advertising and marketing services to help them innovate, compete, grow and create jobs.”
Suzy Young, Partner Relations, WARC Data, said:
“The AA/WARC Expenditure Report ensures our investment benchmarks continue to accurately reflect the pace of change in advertising trade. 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.”
| MEDIUM | Q1 2026 | 2026 | 2027 |
| Yr-on-yr % change | Yr-on-yr % change | Yr-on-yr % change | |
| Cinema | -17.6% | 2.1% | 4.1% |
| Direct Mail | 7.9% | 2.9% | 0.0% |
| Online Classified | 0.5% | -0.9% | -0.3% |
| Other Online Display* | -10.7% | -19.7% | -35.0% |
| Out of Home | 15.0% | 7.6% | 2.5% |
| of which digital | 17.6% | 9.0% | 3.9% |
| Published Media | -5.9% | -3.0% | -0.3% |
| Magazine Brands | -5.7% | -3.2% | -0.5% |
| of which online | 2.9% | 0.3% | 1.5% |
| National News Brands | -3.7% | -1.7% | -0.5% |
| of which online | -0.8% | 0.8% | 1.7% |
| Regional News Brands | -9.7% | -4.8% | 0.4% |
| of which online | -12.1% | -4.4% | 2.6% |
| Radio | 4.2% | 3.3% | 0.6% |
| of which online | 22.1% | 12.6% | 4.5% |
| Retail Media | 17.9% | 15.9% | 13.0% |
| Search | 9.8% | 8.5% | 6.2% |
| Social Media | 17.7% | 16.5% | 12.8% |
| TV | 0.8% | 3.7% | 3.0% |
| of which addressable | 15.5% | 13.6% | 11.5% |
| ALL MEDIA TOTAL | 9.3% | 8.2% | 5.9% |
* Excludes display revenues from magazine brands, news brands, radio, retail media, social media and TV. Includes audio, gaming, video outstream, display embedded formats, native advertising and section take-overs.
Next steps
The Advertising Association and WARC continue to work closely with representative industry bodies to provide a dataset that reflects a deep understanding of the dynamic advertising and media landscape. This latest dataset follows a new breakdown of the figures which was first introduced in April 2026 following consultation with stakeholders.
