UK adspend hit £46.7 billion in 2025, according to the latest – and updated – Expenditure Report from the Advertising Association and WARC.
The data showed that a significant £12.9bn was allocated to media during the festive season alone.
So we’ve been scouring adland to hear how some of the leading voices read the latest data, the challenges on the horizon, and the new changes being introduced to the report…
“This latest AA/WARC Expenditure Report is a welcome and necessary step forward for the industry. As media channels continue to evolve at pace, having clearer definitions and more transparent reporting is essential for advertisers to make informed, effective investment decisions.
“The strong growth recorded in 2025 underlines the resilience and adaptability of the UK advertising market, particularly as newer channels continue to scale.
“At AML we complement this industry view with our own primary research, including proprietary studies like our Investor Index, giving us a deeper real-world perspective on how media investment translates into business outcomes. This more nuanced understanding enables better planning, stronger performance and ultimately greater value for brands.
“This refreshed framework provides a solid foundation for that progress to continue.”
“This latest expenditure report shows strong momentum for radio, with online revenues among the fastest growing digital elements, up 14.9% in 2025.
“2025 was a record-breaking year for commercial radio revenue, as we announced back in March. With further increases predicted for 2026, it’s a positive sign that advertisers recognise radio and audio’s power to amplify advertising impact.
“We’re pleased to be collaborating on the evolution of the report to ensure the industry has the clearest, most accurate information about the UK ad market. “This phase is a big step forward but there’s more to be done and we look forward to working closely with the forum on the next phase of development.”
“Search and social now account for 63% of all UK ad investment. £1 in every £3 spent on UK advertising goes to search (£17.9 billion in a single year), yet governance and oversight of that spend remain one of the industry’s most under-invested capabilities.
“Advertisers keep ploughing money in. Whether they’re governing it with the rigour it deserves is another question entirely.”
“Following on from the recent IPA Bellwether report, this is another heartening set of numbers, with a 6.4% year-on-year increase in total spend, and a bigger-than-expected increase in Q4 “golden quarter” spend.
“Once again, I think the data is evidence of the resilience of the UK advertising industry. In tough times – and these are indeed tough times – smart advertisers know you need to do more to stand out, not less.
“That means investing in the channels where people increasingly spend their time, so it’s no surprise to see social media – the natural home for high-performing native advertising – attracting so much media investment.”
“As always, it’s encouraging to see growth in the sector. For media channels this is no longer about fighting for share of ad spend in a shrinking market, it’s about proving their worth in an increasingly fragmented environment.
“Smart brands and advertisers are hedging their bets on the channels that not only perform individually but also work seamlessly with others to deliver the most effective and impactful results – both ROAS and on the bottom line.
“This is why OOH (especially DOOH) is still performing steadily, despite the big growth coming from newer digital channels such as social and search. It’s evidence of the medium’s broad reach, increasing flexibility and continued tech innovation, as well as playing nicely in the sandbox with other channels (including digital).
“OOH has firmly cemented its role as a core part of the modern media mix. And with transparent and accurate measurement – helped by third-party verification – this is only likely to continue.”
“The news of continued strong growth in social media investment including YouTube, in the AA/WARC Expenditure Report for 2025, is hardly unexpected and reaffirms its position as one of the fastest-growing channels in the mix.
“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.”
“First and foremost, we must acknowledge that UK ad investment is up and predicted to continue.
“A whopping £46.7bn, with strong Q4 spending, plus an upwards curve predicted to hit nearly £50bn this year. Yes, the machinery of advertising is being rearranged with whiplash-inducing speed, but advertisers maintain confidence.
“It reflects how busy we are at DAIVID in the fact that the growing channels of social (21% growth), retail (17.5% growth) and addressable TV (37% growth) all carry huge volumes of ad creative. It’s known these channels work but there is a desire to know exactly what creative is driving that success.
“Notably, online display is down 20%. This also reflects a lot of partnerships we’re forming with the supply side in programmatic to provide quality inventory segments. offering peace of mind as well as cost efficiency to buyers.
“The £12.9 billion spent in Q4 should also send a strong signal that although there may be wider economic headwinds, locally and globally, consumer confidence has been strong.
“It remains to be seen, though, whether more recent events impact ad spend as much as oil supply.”
“The staggering £46.7 billion invested in UK advertising in 2025 underscores the continued strength and resilience of the market.
“A 6.4% year-on-year increase, bolstered by particularly strong growth during Q4, highlights how important advertising remains in driving business performance and outcomes, even amid dizzying market disruption and ongoing economic pressures at home and abroad.
“It’s especially encouraging to see double-digit growth concentrated in channels like social, retail media and addressable TV.
“This points to a market that is not only expanding, but evolving, with advertisers increasingly looking at digital environments that offer greater precision and measurable impact.
“Looking ahead, the growth forecast for 2026 suggests continued momentum, with a number of key tentpole events, including the World Cup kicking off in North America in the summer, expected to drive further investment across key media channels.
“Of course, as ad budgets rise, the focus will increasingly be on how effectively those media dollars are deployed.
“Sharp advances in AI and data are reshaping how campaigns are planned and activated, enabling more sophisticated audience targeting and more relevant, timely and impactful connections with key audiences.
“Real impact will come from combining these capabilities with fresh thinking, more agile ways of working and partners who aren’t bound by legacy models. Increasingly, that means turning to independent agencies and new approaches that can move faster, challenge convention and unlock the full potential of these tools.
“Those marketers who embrace both innovation and new models of collaboration will be best placed to benefit.”
“It’s no surprise to us to see in the latest AA/WARC Expenditure Report that out of home saw steady growth in 2025 and a particularly strong performance in Q4.
“In this peak retail period, OOH has a clear role to play as its presence close to stores, transport hubs and busy high streets means it can influence behaviour at the moments that matter most to advertisers, driving footfall in-store or online.
“The continued growth of digital OOH allows brands to be ever more targeted, not just by location, but also increasing engagement through tailored and even personal messaging triggered by a plethora of data sets, such as day, time, weather, stock availability, promotions and more.”
“The continued rise in social media spend is also no surprise, but our recent research report, The Point of Social, shows people use social very differently when they’re out of home. It is more active and influenced by what people see around them, which positions out of home (OOH) as an ideal channel to prime and amplify social media campaigns.
“We are also encouraged to see forecasts pointing to further growth in 2026, reflecting what we’re seeing with clients that are using OOH more deliberately as part of a wider plan, rather than in isolation.”
“Right now, we’re seeing consumers being more cautious and intentional with where they spend. What’s encouraging from this latest report is that brands are continuing to invest, which makes a real difference when confidence wobbles and consumers look for reassurance from brands they trust.
“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.”
“The AA/WARC report’s findings are a clear signal of an industry inflection point. The double-digit growth in Addressable TV, Social Media, and Retail Media really highlights a strategic, industry-wide pivot towards precision, personalisation, and performance-driven investment.
“But with that shift comes an uncomfortable truth: as budgets diversify across increasingly fragmented, data-rich environments, the gap between investment and provable impact is continuing to widen.
“This makes attribution and incrementality absolutely essential. And the report’s commitment to quantifying emerging areas like influencer marketing and Generative AI is incredibly timely. These aren’t just peripheral considerations anymore; they’re rapidly becoming core to both brand-building and conversion strategies.
“The brands truly pulling ahead, however, aren’t just spending smarter, they’re also getting better at proving it. At a time when every budget decision is under scrutiny, the ability to demonstrate real, measurable returns on marketing investment has never mattered more.
“Using robust, sophisticated measurement methodologies will be absolutely central to achieving that.”
“Brands are demanding measurable, targeted media, as evidenced by the strong performance of digital out-of-home media.
“Advances in methods for targeting consumers on the move are bringing new levels of precision and creativity to digital OOH.
“These range from mobile location data to Automatic Number Plate Recognition data, offering insights into drivers. These methods help DOOH rival any digital channel in terms of accuracy and targeting.
“As brands demand a greater impact from every pound they spend on outdoor advertising, location data intelligence isn’t a nice-to-have; it’s the new baseline.”
“Looking under the hood of what is encouraging total growth of advertising expenditure in 25′, we see stand out performance from Social (+21%) no doubt bolstered by the increasing audiences and format opportunity across YouTube and TikTok.
“What is interesting to see is despite flat/marginal decline across TV and Radio, addressable formats increased yoy by 37% and 14% respectively.
“This demonstrates the efficacy of the format and shifting viewership to digital as consumers enjoy more TV and Radio online.
“I will be fascinated on the impact of platform agents in the 26′ report and whether their impact on driving faster purchase (collapsing the funnel if you want to be more dramatic) has on total spends in the future.
“You could take the view that media reach will decline marginally over time with total advertising expenditure to grow in line with inflation, supporting a shift in how the industry pivots towards optimising towards agent choice/priority recommendation.”
“It’s no surprise to see search continuing to dominate the media landscape in the UK, accounting for 38% of total ad spend, up 5.8% year-on-year, because in search, people’s intent is explicit, which helps explain why our own search business grew by 500% last year.
“We are also pleasantly surprised that a major search engine recognised last year that too many ads are not the way forward.
“The 20% decrease in other online display confirms what we are focusing on at Brave: people don’t like to be tracked, profiled and see ads that are not relevant to their current intent – and advertisers are taking note.”
“The latest AA/WARC report highlights a strong upward trend in advertising investment, which is positive to see. Brands are doubling down on digital, with TV, radio, and social media all enjoying double-digit growth over the past year, and crucially, we are also seeing a significant year-on-year resurgence in out-of-home (OOH) advertising.
“With forecasts predicting investment will climb 6.6% to £49.8 billion in 2026, and reach £52.6 billion by 2027, 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.”
“Strong growth in Q4 reflects a resurgence in channels which previously underperformed, such as social media, where AI integration into platforms such as Meta has now unlocked potential for advertisers to find the right audiences.
“In 2025 as a whole, the spotlight falls on the double digit growth from Social Media and Retail Media, but the smaller 5.8% growth from Search reflects its larger contribution to the total media spend in the UK: 5.8% growth here is a big increase in real terms, taking spend in 2025 to £17.8B out of the £46.7B total.
“The AA/WARC forecasts suggest an acceleration in 2026, and a slight brake in 2027. The forecasts suggest that Social Media gains will slow, as current AI-driven gains become the new baseline. A more bullish view of the next two years would highlight AI-delivery from search as well as social media, which has shown seeds of pushing spend growth here back up towards double digits. This could grow the picture overall.”
“The real TV story is one of redistribution. Total TV being down 1.2% year on year masks the transformation happening underneath: addressable TV grew 37% to £1.8bn, now accounting for 35% of all TV spend.
“Brands aren’t abandoning television. They’re demanding the same accountability and targeting precision from the living room screen that they get from every other digital channel and we’re seeing broadcasters pushing product evolution to compete with global players.”
“What struck me from these latest numbers was the confirmation that retail media is as big a deal as we all suspected, plus the decline in TV spend.
“It’s clear from the results that only Connected TV is propping up the overall TV category. It suggests to me that while big brands will always want to run big campaigns for reach, all those below the level of the really big spenders are looking much more closely at their TV spend and taking advantage of the more precise targeting that CTV offers.
“And since these advertisers are often looking to reach only hundreds of thousands, or even thousands, of households, rather than millions, it comes at a much lower cost.”