Advertising spend reached £42.6bn in 2024, a real term rise of 7.6% once inflation was accounted for, according to the latest quarterly Expenditure Report by the AA and Warc, published today ( 30th April). 

AA/Warc forecasts the UK advertising market to grow by 6.3% to reach £45.2bn this year, which would represent a 0.6 percentage point downgrade from an earlier full-year forecast published by AA/Warc in January.

April’s forecast considers a possible destabilising effect from US trade tariffs on the global economy and a more difficult economic environment leading to uncertainty, according to the report commentary.

The latest report found that advertisers’ investment in online display increased by 15.1% year-on-year in 2024. The online display channel included social media, which accounted for 53% of overall online display spending, and retail media, which grew 22.7% in 2024.

Stephen Woodford, chief executive, 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."

James McDonald, director of data, intelligence and forecasting, Warc, said: "Confidence in the UK’s advertising market remains fragile, burdened by sustained economic stagnation and recently introduced business taxes outlined in the Autumn statement. The introduction of new trade tariffs by the Trump administration adds further complexity, particularly for sectors with high exposure to international supply chains.

“At worst, such disruption stands to erode margins, with any increase in operational costs for businesses potentially translating to higher prices at the till. The temptation to cut ad budgets in such a climate will be elevated, therefore, but Warc research clearly demonstrates that short-termism poses an inordinate risk to enduring brand equity.” 

The AA and Warc's review of advertising spend includes the AA/Warc’s quarterly survey of all national newspapers, regional newspaper data collated in conjunction with Local Media Works and magazine statistics from Warc's panels.

The AA and Warc compile data for other media channels in conjunction with UK industry trade bodies and organisations including the Internet Advertising Bureau, Outsmart, Radiocentre and the Royal Mail. All data are net of discounts and include agency commission, but exclude production costs.