UK advertising market forecast to exceed £43bn in 2025

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Spend in the UK advertising market is forecast to reach £43.1bn in 2025, a year on year increase of 6.5 per cent, according to the Advertising Association (AA) & Warc Expenditure Report.

This follows a strong 2024 for investment in the UK advertising market, which was capped off with a record spend on Christmas advertising campaigns. Expectations of spending in the industry improved during 2024 because of better than expected results for digital media companies and changes in market sentiment towards inflation.

Although exact predictions for 2025 UK ad spend vary, other forecasters also see a good year for the UK market, with Group M, the media buying division, saying that the UK advertising will grow faster than the French or German markets in 2025, solidifying the UK's position as the largest ad market in Europe and the third biggest globally (after the US and China).

The UK market experienced a strong finish to 2024, as businesses invested in advertising to secure a good performance in the competitive Christmas season. The AA and WARC report estimates investment in Christmas advertising in the UK rose by 7.8 per cent year on year in 2024, highlighting advertising’s vital role to support businesses, jobs and the economy during this crucial trading period for many businesses.

Research from Kantar showed positive sentiment towards UK Christmas ads was the highest since measurement began, with 59 per cent of people saying they ‘loved’ Christmas TV ads, up from 51 per cent in 2023. While 48 per cent of consumers in 2023 were ‘really looking forward to seeing Christmas ads on TV’, this figure grew to 56 per cent for 2024.

Many of the UK’s biggest brands including John Lewis, Tesco, Sainsbury’s, Waitrose, Marks & Spencer and Boots released blockbuster Christmas ads in 2024, alongside global brands such as Amazon, Disney and Coca-Cola.

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