The latest AA/WARC Expenditure report revealed the UK advertising industry delivering impressive growth over the past year.
But with multiple headwinds and much uncertainty ahead, how long can that continue to be the case? And what should brands, agencies and their adtech partners be doing to weather any storms ahead in 2025?
Here, media industry leaders share their insights on the latest report on the state of the industry…
Tanya Field, co-Founder & CPO, Novatiq
“It’s positive to see strong UK ad market growth—£42.6bn in 2024 and rising—but the challenge now is not just reach, it’s relevance and trust.
“With over 80% of budgets flowing into digital, advertisers need precision targeting that respects privacy.
“Our own latest insights show brands are under increasing pressure to deliver addressable advertising without relying on third-party cookies or intrusive identifiers.
“The future lies in privacy-enhancing technologies and real-time, telco-verified IDs that enable consented, compliant audience activation.
“As economic uncertainty puts every pound under scrutiny, the ability to connect with real people—securely and at scale and deliver improved ROI for advertisers – will become a defining advantage.”
Sam Fenton-Elstone, CEO & Co-founder, Anything is Possible
“The bullish figures from the Ad Association/WARC report need to be matched up to the lived reality of brands and agencies on the ground.
Layering in context from the IPA’s Q2 bellwether report is super-enlightening.
Taken together, the UK ad market shows signs of a split personality. But both versions are true.
On one hand, WARC reports impressive headline growth, with £42.6bn spent in 2024 and more to come. On the other hand, the IPA Bellwether reveals a sharp Q1 reality check, with marketers cutting budgets for the first time in four years.
It’s not a contradiction, just a lag between where the money went and where confidence sits now.
Behind the numbers, there’s a clear pivot underway: brands are pulling back from long-term plays, leaning harder into activation, sales promos, and high-intent channels like search, social, and retail media.
This is a familiar trend when sales revenues drop: squeezing drops from the bottom of the funnel. But it’s not an effective long-term play.
Those who keep building brands while others cut corners always win on the rebound.”
Elizabeth Darcy-Potts, Managing Director, Pipeline360
“The AA/WARC figures confirm what we’re seeing across the B2B space: budgets are up, but pipeline performance is not keeping pace.
“Despite a 10.4% rise in UK ad spend, our own research at Pipeline360 shows that only 12% of UK marketers rate their strategy as ‘exceptional’—and more than half admit to making only limited progress against their pipeline goals.
“The real issue is late-funnel friction. As over 80% of spend shifts to digital formats like search and display, sales and marketing teams must close the gap between engagement and conversion.
“Without tighter alignment and clearer accountability, B2B brands risk wasting hard-won demand. In 2025 and beyond, success won’t be defined by how much we spend—it will come down to how effectively we turn attention into action.”
Sean Adams, CMO, Brand Metrics
“Despite a slight downgrade in the 2025 forecast, a 6.3% growth outlook remains encouraging.
“For advertisers, proving the effectiveness of campaigns in driving brand awareness and favourability will be essential in justifying continued investment amidst shifting economic conditions.
“The starting point for this is to ensure they have the tools in place to measure these.”
Frazer Locke, SVP International, TripleLift
“Considering the ongoing economic turmoil, it’s exciting to witness the UK advertising industry’s remarkable growth in 2024 — a testament to our sector’s resilience and innovation.
“The continued shift towards online formats, now accounting for the lion’s share of ad spend, reflects not just a change in media consumption habits, but also the growing sophistication of how we engage audiences in digital environments.
“One area that particularly stands out is the explosive growth in retail media. We’ve long talked about the power of first-party data to sharpen targeting at the point of purchase, but it’s critical we don’t lose sight of what truly drives consumer engagement: creativity.
“Data may identify the opportunity, but it’s creative technology that brings the message to life and offsite inventory that enables retailers to reach audiences at scale.
“As retail media matures, the industry must double down on tools that enable dynamic, context-aware storytelling — building experiences that don’t just convert, but connect.”
Rob Hicks, CEO, C-Screens
“The continued growth of the UK advertising market – surpassing £42.6bn in 2024 – reflects the resilience and adaptability of our industry, even in the face of economic uncertainty.
“It’s particularly encouraging to see video-on-demand, retail media, and out-of-home all gaining momentum, with VOD alone up 25.7% year-on-year.
“The expansion of AA/WARC’s definition of TV to include ad-supported SVOD, AVOD, and FAST is a timely recognition of where audiences – and value – are shifting.
“At C-Screens, we’ve long believed in the power of premium, contextually rich environments outside of the traditional living room.
“With more consumers on the move and more brands seeking cost-effective reach, we’re proud to be part of the ecosystem helping to redefine what modern TV advertising looks like across digital and physical spaces.”
Tanya Easterman, CMO, DiO
“It’s heartening that last year’s Christmas season—the UK’s own ‘Super Bowl’ moment—delivered a 9.1 % year-on-year uplift.
“The Golden Quarter remains the most critical trading period for retailers, and these numbers prove that emotionally resonant festive campaigns continue to pay back in both brand equity and immediate sales.
“Quite how channels will fare this year, with the pre-watershed ban on HFSS TV ads taking effect in October, is naturally causing ad-land consternation.
“Headlines such as “Is HFSS Killing Christmas Ads?” and “They’re Banning Our Mince Pies” capture the mood. Yet our sector has always thrived under constraint: every new ruleset—whether around privacy, gambling or HFSS—has sparked fresh creative solutions.
“The looming regulations will be no different, and I’m confident the UK will retain its reputation as the world’s creative benchmark.
“Momentum is strongest in measurable, commerce-driven formats. Cinema too enjoyed a surge in Q4.
“We’re helping brands re-engineer their media mix around these growth areas—pairing rich audience emotional insight with outcome-based buying to deliver accountable performance.
“Forecast downgrades for 2025 remind us that geopolitical headwinds and regulatory uncertainty can dent confidence. But the evidence is unequivocal: businesses that sustain strategic investment through choppy waters emerge stronger.
“At DiO, our focus remains on helping marketers balance efficiency with innovation—using privacy-safe data, emotional insight to empower creativity and drive transparent measurement—to ensure advertising continues to be a growth engine for the UK.
Tom Stone, co-Founder, re:act
“The downgrade isn’t surprising given the economic backdrop, but it’s important we don’t lose sight of the bigger picture.
“Year-on-year growth is still happening, and there’s plenty of evidence to show that investing in brand during periods of uncertainty can pay off in the long term.
“While consumers may tighten their belts, they continue to buy everyday products, and they remember the brands that show up with relevance and empathy.
“A digital-heavy mix gives advertisers the tools to measure effectiveness at every stage of the funnel. But this shouldn’t come at the cost of brand storytelling. Now’s the time to double down on building emotional connections while keeping one eye on performance.
“Many clients are still pursuing growth in the UK and Europe, and with the U.S. outlook a little shaky, that presents opportunity.
“Resilience and adaptability matter. The brands that master both will come out stronger.”