UK Advertising Spend Forecast to Hit £46bn in 2025, WARC Report Shows

Online formats to account for 83% of Q4 spend as VOD surges 17%

UK advertising spend is expected to increase by 7.3% to a total of £12.0bn in the final quarter of this year, according to the latest Advertising Association/WARC Expenditure Report. The new forecasts, published today, also show that total ad spend is set to rise by 8.2% to £46.0bn during 2025 as a whole and a further 6.6% to almost £50bn (£49.1bn) in 2026.

Festive ad spend

The advertising market is predicted to see an £814m boost compared with the same period in Q4 2024, with advertising continuing to play a vital role in supporting economic growth during the Christmas season.

The UK’s biggest brands are set to unveil their festive campaigns in the coming weeks, driving activity across a range of channels including online formats and Video on Demand (VOD). VOD is forecast to see the largest boost, with spend rising 17.2% year-on-year to £430m in Q4. However, fluctuation is expected in the total TV market due to a decrease in advertiser confidence, dampened by economic uncertainty.

On the…