The latest AA/WARC expenditure report reveals that UK ad spend grew by 6.1% in 2023, reaching £36.6bn. However, after adjusting for high inflation, this growth translated to a real-term contraction of 1.2%, slightly behind the broader UK economy, which saw minimal growth at +0.1%. Despite these economic challenges, Out of Home (OOH) advertising was a clear standout, recording a strong 9.7% increase in spend. Digital Out of Home (DOOH) played a crucial role, with a significant 12.2% rise, underscoring the medium’s growing popularity and effectiveness.
OOH’s performance highlights the sector’s resilience, particularly in an advertising landscape where traditional formats struggled to maintain growth. Digital innovations within OOH, such as real-time content delivery and dynamic ad placements, have helped the industry adapt to the demands of modern advertisers. By offering more targeted, engaging campaigns, DOOH has transformed public spaces into interactive environments that drive consumer engagement. As a result, OOH has remained an essential part of the advertising mix, complementing the dominance of digital formats.
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Looking ahead, the AA/WARC dataset predicts a promising outlook for the UK advertising market, forecasting a 5.8% rise in 2024, which would push total ad spend to nearly £39bn. While digital formats will continue to dominate, with search expected to grow by 8.9% and online display by 6.4%, traditional media is set for a resurgence. TV is forecast to grow by 2.6%, radio by 2.3%, and cinema by 2.5%, marking a return to growth for broadcast channels after a challenging period.
Key events in 2024 are expected to provide short-term boosts, particularly for media like broadcaster video-on-demand (BVOD), which is projected to see a 14.1% increase. The Men’s Euros in June, the UK General Election in the second half of the year, and the Paris Olympics in July are all likely to encourage higher advertising investment, particularly in formats that deliver mass reach, such as TV, radio, and OOH.
| Media | 2022 £m | 2023 £m | 2023 year-on-year % change | 2024(f) year-on-year % change | 2025(f) year-on-year % change |
| Search | 13,143.80 | 14,705.00 | 11.90% | 8.90% | 6.40% |
| Online display* | 11,612.20 | 12,925.10 | 11.30% | 6.40% | 5.50% |
| TV | 5,381.00 | 4,900.00 | -8.90% | 2.60% | 0.90% |
| of which BVOD | 845.4 | 979.6 | 15.90% | 14.10% | 11.00% |
| Out of home | 1,181.20 | 1,295.30 | 9.70% | 7.20% | 5.60% |
| of which digital | 749.9 | 841.3 | 12.20% | 9.50% | 7.30% |
| Online classified | 1,110.80 | 1,080.80 | -2.70% | -0.60% | 1.50% |
| Direct mail | 1,094.50 | 956.7 | -12.60% | -4.90% | -3.30% |
| National newsbrands | 825.3 | 773.6 | -6.30% | -3.30% | -2.10% |
| of which online | 374.5 | 352.8 | -5.80% | -0.80% | 0.80% |
| Radio | 740.1 | 715.5 | -3.30% | 2.30% | 1.60% |
| of which online | 77.7 | 72.2 | -7.10% | 7.50% | 4.10% |
| Magazine brands | 553.8 | 503.3 | -9.10% | -5.10% | -0.80% |
| of which online | 302.2 | 260.8 | -13.70% | -4.80% | 2.00% |
| Regional newsbrands | 505.2 | 454.2 | -10.10% | -3.30% | -2.00% |
| of which online | 259.2 | 239.4 | -7.60% | -1.70% | 0.20% |
| Cinema | 229.5 | 219.9 | -4.20% | 2.50% | 2.20% |
| TOTAL UK ADSPEND | 34,518.50 | 36,624.30 | 6.10% | 5.80% | 4.50% |
Note: Broadcaster VOD, digital revenues for newsbrands, magazine brands, and radio station websites are also included within online display and classified totals, so care should be taken to avoid double counting. Online radio includes targeted in-stream radio/audio advertising sold by UK commercial radio companies, together with online S&P inventory. Source: AA/WARC Expenditure Report, April 2024 | |||||
The outlook for 2025 is equally optimistic, with a further 4.5% increase in UK ad spend projected, as economic headwinds are expected to ease. BVOD is forecast to rise by 11%, with search and online display continuing their strong performance, growing by 6.4% and 5.5%, respectively. By 2025, the UK ad market is expected to surpass £40bn, with outdoor advertising, particularly DOOH, continuing to play a vital role in connecting brands with consumers in public spaces.
Source: AA/WARC Expenditure Report Q4 2023.
