UK advertisers will spend £12bn this festive season — a year-on-year increase of almost £2bn — taking their total ad spend for the year up to £46bn.
The figures, produced by the Advertising Association (AA) and Warc, predict that the seasonal boost will be driven by video-on-demand (VOD), which will increase 17.2% year-on-year in Q4.
Warc’s director of data, intelligence, and forecasting, James McDonald, suggested that this growth in video on demand ad spend, along with growth in search in retail platforms, ‘underscores a prioritisation of digital engagement and its influence on the path to purchase.’
Cinema and out-of-home ads are both predicted to be up by more than 3% (3.1% and 3.1% respectively) in Q4, and direct mail and radio are both expected to rise by 0.5%.
The increased Christmas period ad spend is broadly in line with previous years. Data by the AA shows festive marketing spend increased from £9.1 billion in Q4 of 2022 to £9.5 billion in 2023 and £10.5 billion last year.
The report also predicts that total ad spend in the UK in 2025 will reach £46 billion — 8.2% more than 2024 — and will rise further to £49.1 billion next year, despite what AA CEO Stephen Woodford called ‘ongoing economic uncertainty and caution in the run up to the November budget’. In particular, the report suggests that TV ad spend will return to growth next year at 5.8% up on 2025.
Woodford added: ‘Every £1 spent on advertising returns £4.11 in profit for medium to large businesses and £1.89 for micro-small businesses.’
Image taken from author’s favourite festive advert.
