The UK advertising industry is forecast to grow by 7.7% in 2024 after a record first quarter, and there are further signs of optimism with marketing budgets increasing at the highest rate in a decade, in a healthier economic climate.

• The Advertising Association/WARC Expenditure Report showed that ad spend climbed by 9.3% to £9.2bn in the first three months of 2024. Online formats accounted for 79.7% of all spend in the quarter.
• Ad spend growth is expected to be maintained in Q2, thanks to the economic recovery but also increased spending around football’s Euro 2024 held in Germany and the snap general election, which saw the Labour Party return to power in a landslide.
• Ad spend growth was seen across search (including retail media), online display (including social media), online classified, out of home, radio and cinema. Newsbrands and magazine brands, and direct mail witnessed declines in investment.
• AA/WARC expects overall advertising growth to be less pronounced in 2025, but other trends such as increased adoption of AI are expected to have a greater impact over time.
• According to the IPA Bellwether Report, marketing budget growth in Q2 2024 was at its highest level in more than 10 years, with events remaining the best-performing category in terms of budget growth. Respondents were generally positive about the financial prospects for their own company and showed the highest level of confidence since Q3 2021.

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