If the Government is so desperate for growth, it should be right behind the UK advertising industry, which – according to the Advertising Association and WARC’s new figures – grew 11.2% to £40.7bn in 2024. In the crucial final quarter, the rise was 9.7% to £10.6 billion.
Continued polarisation of online audiences and Zuckerberg’s removal of fact-checking on Facebook and Instagram seem unlikely to impede digital advertising’s growth. The strongest rises came from online display (+18.9%), search (+12.7%), broadcaster VOD (+12.4%) and OOH (+10.3%). In Q3, FMCG (+21.0%), food (+7.6%) and financial (+6.9%) were the main drivers of growth.
Final figures are due in April, but advertising is expected to significantly outperform the UK economy again in 2025, with growth of 6.9% to £43.5 billion. Digital ads account for most of the increase, which was boosted by live sport viewing of the Olympics and the Euros.
Stephen Woodford, CEO of the Advertising Association, said: “While there is much work to do to kickstart growth in the UK economy, we know investment in advertising produces a fantastic return. It supports competition, innovation and jobs up and down the country. It is also important to reflect on how policy decisions can impact the planning of advertising campaigns, such as the delayed resolution of the Less Healthy Foods regulation. This is a clear example of where businesses require certainty to have the best chance to deliver growth.”
James McDonald, director of data, intelligence & forecasting at WARC, said: “Online ad formats, benefitting from the widespread adoption of new AI tools, have propelled the UK ad market to exceptionally strong growth so far in 2024 and will continue to drive expansion into 2025. However, economic uncertainty remains at both a local and global level. As a new US president comes into office, attention will be focussed on implications for the world economy. In the UK, advertising businesses will look to the UK Government’s growth strategy and how it will affect the industry. A deterioration in overall business confidence could lead some marketers to depress spend in the short term.”
