UK advertising investment was forecast to reach £14bn in the fourth quarter of 2026, up 8.2% year-on-year, with a total of £51.3bn for the year, a rise of 9.9% on 2025.

The report said that in the second quarter of 2026, retail media grew 31.2% from the previous year, with cinema posting growth of 24.5% due to major film releases.

Other areas with strong growth included social media ( 22.2%), out of home ( 12.7%) and addressable TV ( 12.7%).

Smaller gains were seen for search ( 9.3%), direct mail ( 4.5%), online classified ( 4.4%), digital radio ( 3.2%) and television ( 2.6%).

Looking ahead to 2027, total advertising investment was projected to reach £54.7bn, led by growth in areas such as social media, retail media and addressable TV.

Stephen Woodford, chief executive at the Advertising Association, said: “As we approach the festive season, UK advertising continues to demonstrate strong growth momentum, with Q4 investment forecast to rise 8.2% year-on-year to £14bn.

“This represents a £1.06bn boost compared to the same period in 2025, underlining the vital role advertising plays across all channels and media formats in supporting business growth during the golden quarter and beyond.”

Suzy Young, head of media data at Warc, added: “Q2 2026 ad investment remained strong despite geopolitical headwinds and weak consumer confidence linked to the Middle East conflict.

“Growth was boosted by the FIFA World Cup, but increasingly reflects AI investment, as platforms enhance targeting while both new AI-native companies and established tech firms compete for customers – a dynamic that improves efficiency while generating new demand, helping offset weaker sentiment.”