This week’s AA/WARC Expenditure Report has revealed that advertising and marketing industry is continuing to grow at pace in the face of both domestic and global economic pressures.
While the report covers actual spend from 2025, the authors forecast that 2026 will see a further 6.6% increase in budgets to get close to the record-breaking £50bn, as brands increasingly embrace data-led strategies.
Naturally, the report makes its own conclusions, but Decision Marketing asks leading industry professionals for their take on the year ahead.
First up is Jellyfish vice-president of media strategy Sarah Flannery, who believes search remains the bedrock of UK advertising for good reason; it sits closest to the point of transaction and provides tangible ROI in times of uncertainty.
She adds: “What we see with our own clients is that huge disruption with AI has led to more searches and more investment and the channel continues to be the connective tissue from discovery through to conversion.”
Meanwhile, Audion head of sales for EMEA Elie Kauffmann reckons audio is still flying the flag when it comes to advertising budgets, with online radio making up a significant proportion of the growth for the channel, reflecting its increasingly digital nature.
However, he reckons that while the latest report is a useful barometer, it is only part of the picture.
Kauffmann continues: “Audio has always been a natural fit when it comes to advertising that builds brand awareness. We’re now seeing it evolve to embrace a performance marketing role as AI-based tools deliver outcome-driven campaigns. At the same time, audio retains what has always made it unique: its personal, trusted and highly contextual appeal for listeners.
“Overall brands and agencies now have a flexible, full funnel channel that, in offering both scale and effectiveness, is in keeping with the requirements of modern media strategies.”
Over at Launch, client services director Amy Budd is encouraged that brands are continuing to invest, which makes a real difference when confidence wobbles and consumers look for reassurance from brands they trust.
She explains: “This is reflected in the biggest shifts in spend, across addressable TV, YouTube and social channels built for storytelling and brand recognition, not just short-term clicks.
“The brands that balance short-term performance with long-term brand building will bounce back quicker. Trust and familiarity are the advantage. Those who play the long game won’t just recover faster, they’ll come out stronger.”
For Zoom Media managing director David Wellard, the report highlights how brands are doubling down on digital, with TV, radio, and social media all enjoying double-digit growth over the past year, and, crucially, there is a significant year-on-year resurgence in out-of-home (OOH) advertising.
Wellard adds: “With forecasts predicting investment will climb, the mandate for brands is clear: continue investing in channels that maximise visibility and ROI. As boardrooms keep budgets under a microscope, we expect a significant migration of spend toward OOH and DOOH as it becomes increasingly targeted and measurable.
“With improved levels of precision and accountability, the opportunity for marketers lies in leveraging OOH’s unique blend of physical scale and digital intelligence to ensure every pound spent delivers maximum value.”
Even so, Fan Club director of strategy and operations Ellen Stewart reckons the report reaffirms social media’s position as one of the fastest-growing channels in the mix.
She continues: “What’s driving that growth is a fundamental shift in how brands are beginning to think about social. It’s no longer just about buying reach, it’s about building audiences and connecting with communities.
“For years, brands have relied on renting audiences through publishing partnerships, which still has its place, but it’s no longer sufficient on its own. The brands seeing the most value are those investing in their own content ecosystems and creating IP.
“Publishers remain a powerful entry point, but the smarter move is using those partnerships to establish and build something long lasting rather than treating them as one-off campaigns. The forecast for more growth in ad expenditure in 2026 is welcome news and we are in no doubt that much of this will be driven by more investment in social.”
The final word goes to Usercentrics head of strategy and market intelligence Tilman Harmeling, who says that data is becoming increasingly more central to performance, with data-powered channels such as retail media, social and search among those growing at the fastest rate.
But Harmeling maintains that as reliance on data grows, so does the need to use it responsibly.
He explains: “Brands are under increasing pressure to balance effective targeting with transparency and accountability around how consumer data is collected and used.
“Research with MIT Technology Review highlights a clear gap. While consumers recognise the value exchange behind digital services, many still don’t understand how their data is actually being used. In fact, 41% say they lack a clear understanding, while 48% say transparency would make them more likely to trust a company more with their data.
“This is where the opportunity lies. Those that prioritise transparency and build more user-centric data experiences will be better placed to strengthen engagement and make the most of continued market growth. As the industry scales, trust is becoming a key factor in delivering sustainable performance.”
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