London, July 29, 2025: The latest AA/WARC Expenditure Report reveals UK advertising spend rose 8% to a total of 拢10.6bn in the first three months of 2025, +1.4 percentage points (pp) ahead of the April forecast. Data shows this increase was predominantly caused by an improved performance for search (including retail media) (+12.3%).
The UK advertising market is forecast to grow by 6.8% this year to 拢45.4bn, a slight increase (0.4 pp) since the April forecast. While AA/WARC expects the UK鈥檚 overall GDP growth to remain relatively flat at 1.1% in 2025, UK adspend is still expected to see 3.5% growth, after inflation. Channels expected to make gains in 2025 include TV Video-On-Demand (VOD) (+10.1%), search (+9.4%), online display (+9.2%), cinema (+9.0%), out of home (+3.1%) and radio (+1.2%).
Despite ongoing economic challenges, including a recent jump in UK inflation to 3.6%, both consumer and business confidence in the UK have shown an improvement in June.
Looking ahead, AA/WARC鈥檚 forecast remains unchanged for 2026, with the advertising market expected to grow 5.6% to reach 拢48.0bn. According to the AA鈥檚 recent report Advertising Pays 2025, advertising accounted for 4% of total UK GVA in 2024, reinforcing its value as a key driver of economic growth.
Q1 in Depth
Results for Q1 were led by an improved outcome for search (including retail media) (+12.3%) and strong growth for online display (+10.1%, including social media on +14.7%). Both channels benefited from budgets being brought forward in the quarter, particularly as advertisers sought more short-term solutions during uncertainty caused by the period of negotiation of the US administration鈥檚 trade deals. While there is more certainty in the UK economy now a trade deal has been secured, global macroeconomic headwinds persist.
Media channels which saw a positive Q1 2025 include cinema (+19.2%), online radio (+16.4%), search (+12.3%), online display (+10.1%),TV VOD (+5.4%) and direct mail (+3.6%). Big budget releases for cinema earlier this year included titles such as Bridget Jones: Mad About The Boy and Captain America: Brave New World, while Mufasa: The Lion King and Wicked continued to perform well in the new year.
Similarly, online radio has been showing strong double-digit growth over the last four quarters as radio listening continues to benefit from new technology.
Stephen Woodford, Chief Executive, 果冻传媒n said: 鈥淔urther growth in the first quarter of 2025 is welcome, particularly following the launch of the UK Government鈥檚 new industrial strategy which recognises advertising as a priority sector.
The announcement that brand advertising will be exempt from the incoming Less Healthy Food restrictions has also provided important clarity for advertisers, ahead of the industry鈥檚 agreement to implement these from October 2025.
With our latest Ad Pays 2025 report showing advertising supports 1.7 million jobs, we will continue to monitor advertising expenditure and work with Government to highlight advertising鈥檚 contribution to the UK economy.鈥�
James McDonald, Director of Data, Intelligence & Forecasting, WARC, said:听鈥淭he latest survey data highlights buoyancy in certain corners of the UK ad market, with total investment growing just ahead of forecast despite a wavering economy and a sustained period of global trade turbulence. Advertisers were seen to pull budgets forward and double down on agile formats within search, social, and retail media in response to the volatility sparked by new US tariffs. Brands appear to be adapting to the current environment by reallocating budgets tactically, with the outlook for the year remaining broadly positive despite persistent headwinds.鈥�
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| Media | Q1 2025 year-on-year % change |
2025 forecast year-on-year % change |
Percentage point (pp) change in 2025 forecast vs April | 2026 forecast year-on-year
% change听听听听听听听听听听听 |
Percentage point (pp) change in 2026 forecast vs April |
| Search | 12.3% | 9.4% | 1.2pp | 7.0% | 0.2pp |
| Online display* | 10.1% | 9.2% | 0.0pp | 6.8% | -0.1pp |
| TV | -2.1% | -0.9% | -1.8pp | 4.0% | 0.0pp |
| 听听听 of which VOD | 5.4% | 10.1% | -7.0pp | 14.1% | 0.6pp |
| Out of home | 1.0% | 3.1% | 0.4pp | 4.1% | -0.2pp |
| 听听听 of which digital | 1.6% | 3.7% | 0.5pp | 5.5% | -0.3pp |
| Online classified* | -7.6% | -4.7% | -2.5pp | -2.5% | -1.6pp |
| Direct mail | 3.6% | -1.6% | 2.1pp | -2.0% | 0.2pp |
| National newsbrands | -8.2% | -5.0% | -1.7pp | -0.7% | 0.6pp |
| 听听听 of which online | -4.5% | -1.7% | -2.5pp | 0.9% | 0.2pp |
| Radio | 0.4% | 1.2% | -0.6pp | 2.1% | -0.2pp |
| 听听听 of which online | 16.4% | 12.2% | 7.2pp | 5.5% | 1.7pp |
| Magazine brands | -11.1% | -6.8% | -1.5pp | -1.9% | 0.5pp |
| 听听听 of which online | -13.9% | -6.4% | -1.9pp | -1.2% | 0.2pp |
| Regional newsbrands | -6.8% | -4.4% | -1.0pp | -0.5% | 0.6pp |
| 听听听 of which online | 2.6% | 0.8% | -0.1pp | 1.6% | 0.2pp |
| Cinema | 19.2% | 9.0% | 1.9pp | 2.2% | -1.8pp |
| TOTAL UK ADSPEND | 8.0% | 6.8% | 0.4pp | 5.6% | 0.0pp |
| Note: Video-on-demand (VOD), digital revenues for newsbrands, magazine brands, and radio are also included within online display and classified totals. Online classified also includes revenues for national and regional newsbrands, as well as B2B magazine brands. Care should be taken to avoid double counting these series. Online radio includes targeted in-stream radio/audio advertising sold by UK commercial radio companies, together with online S&P inventory. TV VOD includes broadcaster (BVOD), advertiser-funded (AVOD) and subscription (SVOD) services which include advertising. Source: AA/WARC Expenditure Report, July 2025 |
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The quarterly听听is the definitive guide to advertising expenditure in the UK, with data for all key advertising media and sub formats dating back to 1982 and forecasts spanning eight quarters ahead.
