UK ad spend to exceed £50bn in 2026
Sporting events and cinema releases helped advertising spend grow 11.4% to £12.5bn in Q3, according to new AA/WARC data.
UK ad spend is expected to rise 7.5% in 2026 to exceed £50bn for the first time, according from the latest Advertising Association/WARC expenditure report.
For FY25, AA/WARC predicts growth of 10.1% to £46.9bn, the fifth consecutive year of market expansion.
According to the figures, which represent advertising expenditure from July to September 2025, UK ad spend rose 11.4% to £12.5bn in Q3. For the Q1 to Q3 2025 period, ad spend increased 9.8% to £34.5bn.
These gains have happened despite a background of “wider economic uncertainty” including “domestic and international political uncertainty”, the report finds.
WARC director of data, intelligence and forecasting, James McDonald, claims the data demonstrates “enduring resilience” across the UK advertising industry.
Search and online display formats accounted for 83% of total ad spend in the period, rising 14.6% year-on-year, according to AA/WARC.
Spend on cinema advertising saw the greatest growth from July to September, up 23.9%, credited to film releases such as The Fantastic Four: First Steps and Downton Abbey: The Grand Finale. From Q1 to Q3, growth in cinema was 20.5%.
Online radio notched up 19.2% year-on-year growth in Q3, up 15.6% from Q1 to Q3. This aligns with recent RAJAR data, which reported a record 56% share of commercial radio listening driven by increased digital listening through apps and smart speakers.
‘Shared experiences’
Spend on video-on-demand rose 17% in Q3 and 16% from Q1 to Q3. This increase was attributed to major sports events attracting large audiences on ad-supported streaming platforms, 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. TV overall saw a 0.7% rise, compared to a -1.5% decline from Q1 to Q3.
According to Advertising Association CEO Stephen Woodford, these trends reflect “the valuable audiences around major sporting events, showing how the public still enjoy shared experiences”, which advertising can “enhance through engaging and positive storytelling”.
“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,” adds McDonald.
Elsewhere, out-of-home notched up 4.4% growth in Q3, driven by a 3.3% rise in digital OOH spend. This is bigger than the 1.4% growth registered from Q1 to Q3.
However, direct mail saw a decline (-3.2%) in ad spend during Q3, as did national newsbrands (-2%), magazine brands (-4.8%) and regional newsbrands (-2.6%).
Looking ahead, the FIFA Men’s World Cup this summer is predicted to help TV VOD achieve 13.8% growth in 2026. Search (10.2%), online display (8.4%) and online radio (7.3%) are also set to see gains in 2026.
The picture is not universally rosy. Declines in spend are expected for direct mail (-1.5%), national newsbrands (-1.1%), magazine brands (-1.7%) and regional newsbrands (-0.2%).
The fact UK ad spend is on track to surpass £50bn for the first time this year suggests brands are continuing to invest to “stay competitive, build trust and engage audiences”, says McDonald, even as the wider macroeconomic environment remains “unfavourable”.
