AA/WARC: UK ad spend hit £42.6bn in 2024, driven by strong digital performance

The latest figures from the Advertising Association and WARC show that UK advertising spend rose by 10.4% to reach £42.6bn in 2024, as strong digital growth continued to shape the market. 

Online formats collectively grew by 13.2% year-on-year, accounting for four in every five pounds spent on advertising. Search and online display – including social and retail media – were key contributors, with search alone reaching £16.9bn and retail media up 22.7%. You can find out more here. 

Commenting on the findings, Stephen Woodford, Chief Executive of the Advertising Association, said: “While the UK advertising industry growth is well ahead of UK growth, it’s worth noting business confidence may weaken due to geopolitical headwinds and regulatory uncertainty, which could impact on the way businesses commit to spend on advertising.  

“However, it’s important to remember once again that advertising supports competition and promotes innovation, and helps to create jobs across the UK, so a healthy advertising sector is integral to a healthy economy.” 

TV ad spend increased by 3.8% in 2024, reaching £5.3bn, with the definition of ‘total TV’ expanded to include ad-supported SVOD, AVOD and FAST services. The festive season also delivered a boost, with total Christmas spend rising 9.1% year-on-year, including a 24.2% jump for cinema advertising. 

Looking ahead, AA/WARC forecasts suggest the UK ad market will grow by 6.3% in 2025 to £45.2bn, followed by a further 5.6% increase in 2026 to reach £47.8bn. Search and online display are expected to continue leading growth, with TV projected to rise modestly to £5.5bn in 2026 – a World Cup year – with video-on-demand expected to account for 32% of all TV spend.