This week’s AA/WARC Expenditure Report has revealed that the marketing and advertising industry continues to show its mettle, with the so-called “Golden Quarter” predicted to see adspend rise 7.3% to £12.0bn, with total spend for the year forecast to be 8.2% up to reach £46.0bn.
The report authors insist that the figures suggest a stable trajectory for the UK’s ad market despite a languid economy but what do those at the coalface see? Decision Marketing investigates.
First up is Sky Media client and marketing director Karin Seymour, who, perhaps unsurprisingly, insists that as brands gear up for the all-important Christmas season, more advertisers are recognising the power of combining linear TV and VOD.
She explains: “This is about enhancing TVs role in the media mix. High-quality broadcaster video delivers scale in a trusted environment, forging emotional connections and driving brand fame, while VOD complements it with precision targeting, data-led insights and measurable outcomes. This is across both linear and VOD.”
For UniLED Software client partnership director Sam Holland it is the predicted rise in out of home spend that is the standout factor: “With a 3.1% uplift in OOH budgets over the festive period, clearly advertisers are looking to capitalise on the high street footfall and continued global urbanisation.”
However, Holland adds: “At the risk of sounding too much like The Grinch, it’s not just about the ‘Golden Quarter’ – while OOH is a great short-term driver across DOOH formats, its long-term benefits can’t be ignored. A media plan that fails to include OOH is not as strategic or effective as one that does.”
Meanwhile, Ozone senior director of advertising Emma Cranston says the platform is already seeing early indicators of increased consumer engagement with key content categories, such as Christmas shopping and gifting, children’s toys, consumer electronics, beauty, fashion and luxury goods. There’s a definite sense that the festive season is firmly on the minds of consumers – which will be welcome news to brands, agencies and media owners alike.
Cranston also welcomes the forecast 11% growth online display for Q4. She continues: “Deployed well, the channel can prove to be an incredibly potent way for brands to grab the attention of their consumers. We’ve seen really compelling research recently from Newsworks that spotlights the direct link between high-attention digital media and greater advertising effectiveness.
“As part of their platform marketing mix, brands need to make sure they can cut through in the places where people come to be informed, inspired and entertained, particularly during this most wonderful – and busy – time of the year.”
Even so, Usercentrics senior privacy expert Tilman Harmeling points out that with online formats now accounting for more than four-fifths of total spend, this is not just a media shift, it is a signal of how consumer engagement is evolving.
He adds: “In an ecosystem increasingly driven by data and automation, the brands that truly stand out won’t just be the biggest spenders – they’ll be the ones that put privacy and transparency at the heart of their strategy. Trust is fast becoming the most valuable currency in digital advertising.
“Brands that build campaigns on a foundation of consent and ethical data use don’t just achieve stronger short-term results – they lay the groundwork for loyalty and credibility that lasts well beyond the festive season. Growth and trust now move in lockstep; the future belongs to those who invest in both.”
Meanwhile, Launch client services director Amy Budd believes it is no surprise that so much of the Golden Quarter spend will be invested into digital channels but insists it is vital to prioritise engagement and storytelling to cut through in an increasingly competitive market.
She adds: “Smart brands and retailers have invested in measurement solutions to improve their marketing data and insights to inform more effective and impactful media campaigns. By taking first party data opportunities seriously they can use AI driven campaigns on Meta and Google to create efficiencies.
“These savings can then be reinvested in brand building campaigns that will generate demand and awareness way before the Q4 busy season starts. This helps them navigate the huge price surge of online advertising in Q4 and afford to remain in the biddable media auctions.”
The final word goes to Engage performance marketing director Gregg Turner, who says that while overall marketing budgets are under more scrutiny, the industry is seeing some rebalancing of budgets to meet the need for digital engagement.
He explains: “Spending is increasing in the areas where brands feel most confident about return. The growth in online display and search highlights a clear shift toward activity that offers greater control, clearer measurement, and stronger links to commercial outcomes.
“It’s also not a coincidence that seasonal campaigns are playing a big role here across the ‘Golden Quarter’ for the industry. Brands are using these moments to front-load investment into proven digital tactics.
“We’re also seeing brands pair performance channels with broader channels like out of home media, but with a more digital focus. Formats that used to be hard to measure are now being used as part of full-funnel strategies, feeding into search uplift, branded queries, and social engagement.
“In reality, this isn’t about spending more across the board, it’s about backing the areas that can flex quickly and prove their value. That’s why digital is winning more share even if overall budgets are slowing. It’s not just efficient, it’s adaptable and right now that’s what matters most for decision makers and marketers.”
Pictured (l-r): Karin Seymour, Sam Holland, Emma Cranston, Tilman Harding, Amy Budd, Gregg Turner
Related stories
Up, up and away as 2025 adspend is set to hit £46bn
Fresh boost as firms shift budgets to targeted marketing
Bellwether reaction: Are one-to-one channels now king?
Direct marketing purrs like a Roller as adland splutters
Brands urged to embrace mail to drive digital marketing
Direct mail to join cross-media measurement tool pilot
Digital down as traditional channels return to the mix
Be the first to comment on "AA/WARC reaction: Digital presence to deliver for Xmas"