UK ad spend is heading past £50bn. Here’s where it’s going

UK advertising investment rose 9.3% year on year to £11.7bn in the first quarter of 2026, according to the Advertising Association and WARC. They now forecast £50.5bn for the full year, up 8.2%, and £53.5bn in 2027 [1].

The fastest-growing channels

• Online radio: +22.1% in Q1 [1]

• Retail media: +17.9% [1]

• Social media: +17.7% [1]

• Digital out of home: +17.6% [1]

• Addressable TV: +15.5% [1]

• Search, still the biggest channel: £4.6bn, +9.8% [1]

Earlier in the year, WARC and the AA also forecast TV video on demand as the fastest-growing channel for 2026, at 13.8%, helped by the World Cup [2].

And the ones shrinking

Cinema (−17.6%), other online display (−10.7%) and published media (−5.9%) all fell in Q1 [1].

What it means for your plan

More money is chasing the same attention, especially in social and retail media, so costs in those channels are unlikely to fall. Two things help. First, make creative that earns attention rather than renting it: native, platform-first work that people choose to watch. Second, look at channels where your audience is but your competitors aren’t yet. For many B2B and challenger brands that means partnerships, creators and owned content, not just more paid social.

Sources

1. UK advertising investment rises 9.3% to £11.7bn in Q1 2026, Advertising Association (July 2026)

2. UK ad spend to exceed £50bn in 2026, Marketing Week (January 2026)

3. Advertising Association and WARC Expenditure Report, WARC

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