The data, which is based on a survey of media owners and industry bodies representing them, found that £12.9bn alone was spent on media during the fourth quarter of last year, an 8% rise on the same period in 2024.

There was double-digit growth for retail media ( 30.5%), addressable TV ( 26.9%) and social media, including YouTube, ( 22%) in the fourth quarter.

Search, excluding retail media, rose 8.6% during the festive season while out-of-home ( 4.5%) and radio ( 2.1%) both saw overall spend increases.

For the full year, growth was recorded across addressable TV ( 37%), social media ( 21%), retail media ( 17.5%) and online radio ( 14.9%), with search ( 5.8%), cinema ( 3.4%) and out-of-home ( 2.3%) also seeing an increase.

The AA and Warc said that they predicted advertising investment would hit £49.8bn in 2026, a 6.6% increase, and then rise 5.6% to £52.6bn in 2027.

In addition, the two organisations said they would look to refine their expenditure figures in future through convening a working group of stakeholders.

Areas the working group will consider include developing a clearer understanding of investment in influencer/creator channels, how to address investment in generative AI and large language model advertising, and increased understanding of how investment in media may differ between large brand advertisers and small and medium-sized enterprises.

Stephen Woodford, chief executive at the AA, said: “This evolution of the AA/Warc Expenditure Report will ensure the industry has the best possible information to guide understanding of investment across the UK advertising and media landscape, reflecting how dynamic and diverse that landscape has become.”

James McDonald, director of data, intelligence and forecasting at Warc, said: “This latest iteration – developed in close consultation with industry stakeholders – ensures our investment benchmarks will continue to accurately reflect the pace of change in advertising trade for many years to come.

“The result is greater clarity and transparency around media investment in the UK, to the benefit of both the media industry and the public at large.”