The global and domestic economy might be as fragile as Donald Trump’s ego, but UK advertising continues to smash through, with spend rising by 11.4% to £12.5bn in Q3 2025, triggering a total 2025 forecast rise of 10.1% to £46.9bn, with a further 7.5% increase in 2026 to reach a record-breaking £50bn.
So says the latest Advertising Association/WARC Expenditure report, which paints a far more positive picture than the IPA Bellwether Report, published earlier this month.
The report, which covers advertising expenditure from July to September 2025, estimates that search and online display formats accounted for 83% of total adspend in the period, rising 14.6% year-on-year.
Cinema saw the fastest growth, up by 23.9%, due to popular releases such as The Fantastic Four: First Steps, The Conjuring: Last Rites and Downtown Abbey: The Grand Finale.
Further growth was seen in online radio, which rose 19.2%. This aligns with Rajar data, which revealed a record 56% share of commercial radio listening, driven by increased digital listening through apps and smart speakers, boosting reach for advertisers.
Direct mail is also more than holding its own, and is on course to rise a further 0.8% for the year, despite forecasts that it would decline by 3.7%. This would mean the channel has grown from £956.7m in 2023 to 964.3m in 2024 and to £972.0m in 2025.
Meanwhile, major sports events attracted large, engaged audiences in the summer months, driving the use of ad-supported streaming platforms and causing video-on-demand (VOD) to rise 17.0% in Q3. This boost in both linear TV and VOD was caused by events 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. Out-of-home (4.4%) also saw a positive quarter, spurred by rising digital OOH spend (3.3%).
Overall, the latest figures show that adspend for the Q1 to Q3 2025 period increased 9.8% to £34.5bn.
For FY 2025, AA/WARC predicts growth of 10.1% to £46.9bn, the fifth consecutive year of market expansion. Looking ahead, advertising spend is expected to increase 7.5% to exceed £50bn for the first time in 2026.
TV VOD is forecast to see the most growth (13.8%) in 2026, boosted by major sporting events such as the Fifa World Cup, which offers an opportunity for community engagement.
Search (10.2%), online display (8.4%) and online radio (7.3%) are set to continue recording gains, while OOH is also expected to end 2026 in positive territory, alongside online national and regional newsbrands.
The wider economic backdrop is muted, however, reflecting ongoing domestic headwinds such as slow real household income growth and a loosening labour market. Additionally, domestic and international political uncertainty will continue to weigh on the UK’s overall economic outlook.
Advertising Association chief executive Stephen Woodford said: “These latest figures underline once again how businesses of all sizes and shapes invest in advertising to help them grow. Whether it is an SME or a multi-national organisation, the spend on advertising supports innovation, competition and job creation. This data reflects the valuable audiences around major sporting events, showing how the public still enjoy shared experiences, which advertising can enhance through engaging and positive storytelling.”
WARC director of data, intelligence and forecasting James McDonald added: “Despite a challenging economic backdrop marred by subdued household incomes, a softening labour market and ongoing geopolitical turmoil, the latest data suggests an enduring resilience across the UK’s advertising market. 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.
“That UK adspend is on track to surpass £50bn for the first time this year underpins this conviction, with brands continuing to invest to stay competitive, build trust and engage audiences, even as the wider macroeconomic picture remains unfavourable.”
Related stories
Bellwether Reaction: ‘Stay agile, prioritise targeting’
Budgets on life support as Trump gives firms the willies
AA/WARC reaction: Digital presence to deliver for Xmas
Up, up and away as 2025 adspend is set to hit £46bn
Fresh boost as firms shift budgets to targeted marketing
Be the first to comment on "Ain’t no stopping us now: 2026 adspend to top £50bn"