Advertising Association vs IPA

UK Junk Food Ad Ban Tweak Could Cost £1 Billion

The UK advertising industry is assessing the potential financial impact of proposed government changes to the rules banning advertisements for less healthy food and drink products (LHFs). Current regulations, effective January 2026, restrict TV ads before the 9pm watershed and block online ads. The government is considering updating the nutrient profiling model (NPM) from the 2004 version to a stricter 2018 version, which would expand the range of products covered by the ban. Research by Oxford Economics, commissioned by the Advertising Association, estimates that applying the 2018 NPM in 2025 would have affected an additional £300-£400 million in ad spend, potentially bringing the total impacted expenditure to £1 billion. The industry, including broadcasters like ITV (which lost £20M in H1 revenue) and trade groups, warns of significant investment loss and calls for scrutiny before extending restrictions, fearing disruption to adapted campaigns and harm to the creative industries.

• Current UK rules ban TV ads for less healthy food and drink before 9pm and block online ads.
• Government plans to update the nutrient profiling model from 2004 to a stricter 2018 version.
• Oxford Economics estimates an additional £300-400 million of ad spend would be affected by the tweak.

UK TV Ad Market Set for Growth After Flat Q1

The Advertising Association and WARC reported that UK ad spend rose 9.3% year‑on‑year to £11.7 billion in Q1 2026, prompting upward revisions to 2026 and 2027 forecasts. While digital channels such as retail media, social media and search saw double‑digit or strong growth, linear TV remained broadly flat despite a 15.5% rise in addressable TV, with overall TV up only 0.8% in Q1. The forecast expects total UK ad investment to reach £50.5 billion in 2026 (+8.2%) and £53.5 billion in 2027 (+5.9%), with TV predicted to grow 3.7% in 2026 and 3.0% in 2027, partly anticipating uplift from the FIFA World Cup. Cinema and some published/other display sectors declined in Q1 but cinema is expected to recover later in the year.

• UK ad spend rose 9.3% year‑on‑year to £11.7 billion in Q1 2026, per the Advertising Association and WARC Expenditure Report.
• Addressable TV ad spend increased 15.5% in Q1 2026, with total TV up 0.8% in the quarter.
• Search attracted £4.6 billion in ad investment during Q1 2026 and remained the largest market share.

UK Marketing Budgets Rise Across All Categories in Q3

The IPA Bellwether Report for Q3 2026 indicates a broad recovery in UK marketing budgets, with a net balance of +14.3% of marketers increasing spend—the highest in nine quarters and the third consecutive quarterly growth. All main media subcategories saw upward revisions for the first time, including main media (+9.8%) and 'other online' (+17.2%). PR (+15.3%) and events (+15.1%) led growth, followed by sales promotions (+13.1%). Despite this, industry and company-level financial confidence remain negative, though improved from Q2. S&P Global raised UK GDP growth forecasts for 2026 to 1.2%, supported by events like the FIFA World Cup, but risks from geopolitical tensions and high fuel prices persist. Ad spend forecasts were revised up for 2026 to 2.8% but down for 2027 to 1.3%. Industry experts offer mixed reactions, highlighting opportunities in creator marketing, out-of-home, audio, and video, while cautioning about walled gardens and the need for data quality and attention measurement as AI becomes more prevalent.

• Net balance of +14.3% of UK marketers increased budgets in Q3 2026, marking the third consecutive quarterly growth and the strongest since Q2 2024.
• All main media subcategories saw upward revisions for the first time; main media budgets rose by +9.8%, with online, video, and OOH leading.
• PR budgets experienced the highest increase at +15.3%, continuing 13 consecutive quarters of growth, followed by events (+15.1%) and sales promotions (+13.1%).

AMV BBDO & Spark Foundry win 2026 IPA Effectiveness Awards Grand Prix

The campaign transformed Currys from a retailer threatened by online shopping into the UK's most-preferred technology retailer, generating £500m in incremental revenue and returning the business to...

Global Brands Ditch Labour-Based Agency Fees, WFA Finds

A new report from the World Federation of Advertisers (WFA) and Agency Mania Solutions, titled 'How Brands Define, Scope and Reward Agency Work', reveals a significant shift in agency compensation models. Based on responses from 69 multinational companies with a combined marketing spend of $147 billion, the report finds that labour-based payment models, which were dominant in 2011, now represent the main compensation model for only 19% of global brands. Meanwhile, fixed-fee/output models have risen to 33%, and 'Labour + Performance' models to 21%. Performance-based fees show the strongest momentum, with 63% of multinationals expecting to increase their use, driven by AI, which is compressing labour hours. However, only 20% have evolved their commercial models in response to AI, though 61% intend to. The report also notes a shift in focus towards factors like briefing quality and trust over financial incentives.

• Labour-based payment models now represent the main agency compensation model for only 19% of global brands, down from dominance in 2011.
• Fixed-fee/output models have risen from 20% to 33% over 15 years.
• 71% of respondents were in global marketing procurement roles.