AA/WARC release latest Expenditure Report

Posted on Thursday 29 January 2026 | IAB UK

UK advertising spend rose by 11.4% to £12.5bn in Q3 2025, according to the latest Advertising Association/WARC Expenditure Report, highlighting the continued momentum of digital channels as the primary driver of market growth


The report shows that search and online display accounted for 83% of total UK ad spend in Q3, growing 14.6% year-on-year, reinforcing digital’s central role in advertisers’ media strategies. Video On Demand (VOD) also delivered strong performance, rising 17.0% in the quarter, supported by major summer sporting events and increased viewing of ad-supported streaming services. Online radio recorded growth of 19.2%, reflecting continued shifts in listening towards digital platforms, apps and smart speakers, which are expanding reach and targeting opportunities for advertisers. 

Beyond digital, several channels benefited from strong audience engagement. Cinema was the fastest-growing medium in Q3, up 23.9%, driven by a strong slate of blockbuster releases, while Out of Home (OOH) grew 4.4%, with digital OOH continuing to play an increasingly important role. Major live events also boosted viewing across both linear TV and VOD, contributing to improved performance across video formats. 

Across the first nine months of 2025, total UK ad spend reached £34.5bn, up 9.8% year-on-year. For the full year, forecasts from Advertising Association and WARC predict growth of 10.1% to £46.9bn, marking the fifth consecutive year of expansion. Looking ahead, total ad spend is expected to rise a further 7.5% in 2026, exceeding £50bn for the first time, with continued growth forecast across search, online display, VOD and online radio. 

The findings underline the resilience of the UK advertising market and the growing importance of digital channels in delivering reach, performance and engagement for brands, even amid wider economic uncertainty. 

See the full release here 

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IAB UK

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