AA/WARC: Total UK ad spend up 8.8% in 2022 to £34.8bn

Actual figures released by the Advertising Association/WARC for the full year in 2022 confirm that spend was up by 8.8%, with the total figure standing at £34.8bn, but the momentum from a strong start to the year was seen to wane in latter months. Total UK ad spend growth in the first half of 2022 has been upwardly revised to 26.0%, while the total ad market contracted by 5.7% in the second half of the year. 

2023 projections have been downgraded from the previous forecast (published in January 2023) to +0.5% - compared to +3.8% in January - due to signs that the downturn recorded in the latter half of 2022 has continued into the first half of 2023. Forecasts for the coming year show reduced growth expectations for nearly all sectors of advertising with the economic headwinds of high inflation, muted growth and talent shortages being felt across the industry. Spend is expected to reach £35.0bn in 2023, before a 3.9% rise in 2024 to £36.3bn. See the table below for channel specific forecasts. 

Commenting on the latest data, Stephen Woodford, Chief Executive of the Advertising Association, said: “These figures reflect the broader macro-economic environment, with a cautious outlook as the UK economy narrowly avoids recession, but shows very little signs of real growth. Advertising investment is an important barometer of business performance and confidence in the economic outlook. It drives competition and innovation, supporting job creation and livelihoods, returning a ration of £1 invested generating £6 of GDP."

The latest AA/WARC report follows IAB UK’s Digital Adspend report 2022, which showed the digital ad market outpaced predictions last year to grow 11%, reaching £26.1bn. Find out more about Digital Adspend here.

AA / WARC Expenditure Report data