IAB UK vs IPA

Week in Charts: Paramount-WBD deal, UK Video Ad Spend, AI Brand Risks

This week's VideoWeek charts cover several key industry trends. First, UK digital ad spend reached £21.2 billion in H1 2026, with video up 18% to £5.1 billion, driven by CTV and streaming. Second, research from Parks Associates shows the number of standalone US streaming services declining since 2022, with services like BET+ merging into Paramount+ and FIFA+ moving to DAZN. Third, a Havas survey reveals half of consumers across seven markets feel brands using AI appear 'soulless' and 'cold'. Fourth, PwC forecasts the Italian video ad market to reach €4.4 billion by 2030, with broadcast TV retaining 86% share. In stocks, Paramount Skydance shares rose as its $110 billion acquisition of Warner Bros. Discovery nears, while The Trade Desk hit a 52-week low following a 15% workforce reduction.

• UK digital ad spend reached £21.2 billion in H1 2026, up 13% YoY, with video up 18% to £5.1 billion.
• Parks Associates reports a decline in standalone US streaming services since 2022, with 10 phased out in Q2 2026.
• Havas survey: half of consumers in seven markets feel brands using AI appear 'soulless' and 'cold'.

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.