Adspend continues to climb as mail shows its mettle

UK advertising investment increased by 9.3% year-on-year in the first quarter of 2026, reaching a total of £11.7bn, with direct mail putting in an impressive performance despite fears over the impact of Royal Mail price rises and delivery issues.

That is according to the Advertising Association and WARC’s latest quarterly advertising Expenditure Report, drawn from a survey of media owners and the industry bodies that represent them.

The study 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.

Within this, digital formats have seen 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 £4.6bn in investment during the quarter.

Meanwhile, direct mail continues to defy the doom-mongers, with spend increasing by 7.9%, alongside radio (4.2%), digital magazine brands (2.9%) and online classifieds (0.5%). Total TV (0.8%) remained steady during the first quarter.

This latest dataset follows a new breakdown of the figures which was first introduced in April 2026 following consultation with stakeholders.

AA/WARC forecasts predict an increase in advertising investment of 8.2% to a total of £50.5bn in 2026. This momentum is expected to continue into 2027, with forecast growth of 5.9%, bringing total investment to £53.5bn.

Advertising Association chief executive Stephen Woodford said: “The first quarter of 2026 demonstrated the continuing resilience and rapid evolution of the UK advertising industry. 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.”

WARC Data partner relations Suzy Young added: “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.”