Despite a backdrop of geopolitical uncertainty and global trade disruption, the UK advertising market has kicked off 2025 with surprising strength. 

According to the latest AA/WARC Expenditure Report, ad spend in the United Kingdom rose by 8% in Q1 to reach £10.6 billion, outperforming expectations by 1.4 percentage points compared to the April forecast.

This uptick reflects a tactical pivot from brands responding to the market instability caused by the US administration’s new tariffs and trade policy shifts. Many advertisers chose to pull forward their budgets and invest in more agile and measurable channels, with a particular emphasis on search, social media, and retail media.

Search and Social Take the Lead

The biggest gains came from search advertising, which saw a 12.3% increase, bolstered by the expanding role of retail media. 

Online display advertising also performed well, climbing 10.1%, with social media advertising alone jumping by 14.7%. These formats offered brands flexibility and responsiveness – critical factors in a period marked by unpredictability and rapid shifts in consumer behaviour.

WARC’s Director of Data, Intelligence and Forecasting commented that the UK market is showing signs of buoyancy, with advertisers opting to double down on digital channels that provide short-term returns and performance transparency.

Big Screen Revival and Audio Momentum

Beyond digital, cinema advertising surged by 19.2%, fuelled by high-profile blockbuster releases such as Bridget Jones: Mad About The Boy and Captain America: Brave New World. 

This resurgence underlines cinema’s continued ability to deliver immersive, high-attention advertising moments that resonate with audiences.

Online radio advertising also delivered impressive results, growing 16.4%, thanks to shifting audio habits and increased streaming through tech platforms and smart devices. It marks yet another quarter of double-digit growth for the sector.

Mixed Picture for TV and Traditional Media

The overall TV market dipped 2.1%, but there was growth within the sector. Video-on-Demand (VOD) climbed 5.4%, supported by a broader definition introduced by AA and WARC this year. 

The VOD category now encompasses Broadcaster VOD (BVOD), Ad-supported Subscription VOD (SVOD) like Disney+, Netflix, and Prime Video, as well as Advertising-based VOD (AVOD) and Free Ad-supported Streaming TV (FAST).

However, traditional media continued to struggle. Online classified ads fell 7.6%, national newsbrands dropped 8.2%, magazine brands were down 11.1%, and regional newsbrands declined by 6.8%. 

These figures reflect ongoing structural changes in how consumers engage with content and how advertisers allocate budgets accordingly.

Modest Growth Elsewhere

Some traditional formats did manage to hold ground. 

Direct mail advertising grew by 3.6%, while out-of-home (OOH) advertising edged up by 1%, demonstrating that physical, locally targeted channels still hold value when effectively executed.

Looking Ahead: New Records Expected

Despite broader economic challenges, the UK’s advertising sector appears on track to achieve record-breaking annual performance. 

UK ad spend is projected to grow 6.8% in 2025 to £45.4 billion, an upgrade of 0.4 percentage points from April forecasts. That would set a new all-time high for the industry. Even after adjusting for inflation, this translates to real-term growth of 3.5% – a strong result given that GDP growth is expected to remain flat at 1.1%.

Channels projected to perform well for the rest of the year include:

  • TV VOD (+10.1%)
  • Search (+9.4%)
  • Online Display (+9.2%)
  • Cinema (+9.0%)
  • OOH (+3.1%)
  • Radio (+1.2%)

The forecast for 2026 remains steady, with AA/WARC predicting the advertising market will grow by 5.6%, reaching £48.0 billion.

Conclusion: Agility Pays Off

The data paints a picture of an industry that isn’t just surviving turbulent global conditions – it’s adapting and evolving. 

From strong showings in search and social to renewed investment in cinema and VOD, brands are rethinking how and where they spend. Agile, outcome-driven formats are leading the way, proving essential in a world where stability is hard to guarantee. 

If Q1 is any indication, UK advertising is not only resilient but also increasingly shrewd in navigating uncertain times.