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The latest figures from the Advertising Association (AA) and the World Advertising Research Center (WARC) reveal that UK ad spending increased in Q3 of 2024, with direct mail seeing a significant increase.
Ad spending in the UK reached £10.6bn in Q3 of 2024, a 9.7% increase compared to the same period last year. Within this increase, direct mail saw a 12.9% year-on-year growth in comparison to 2023.
UK ad spending has been predicted to grow a further 6.9% in 2025, bringing the total market value from £40.7bn to £43.5bn.
The figures mark the first time in more than two years that UK direct mail has returned to growth, after declines in 2023 and 2022.
Ad spend channels that also saw a strong 2024 include online display, up by 18.9%, broadcaster video on-demand, up 12.4%, and out of home (OOH), up 10.3%. Final figures for the whole of 2024 are due to be published in late April.
The Strategic Mailing Partnership (SMP) has put out a statement welcoming the new data, declaring it a clear indication that direct mail remains a vital part of media and advertising.
Speaking of the figures, Lucy Swanston, chair of the SMP, says: “As brands increasingly focus on consumer trust and engagement, the tangible, personal nature of mail offers a unique advantage.
“The industry is evolving, with innovations in data-driven targeting and AI-enhanced personalisation ensuring that direct mail continues to complement digital channels effectively.”
Royal Mail has also released statements on the figures. Philip Ricketts, wholesale commercial director at Royal Mail, says: “The latest data from AA/WARC reflects an advertising industry that is returning to confidence and investing in a healthily varied media mix.
“With an overall year-on-year growth rate of 11.2%, ad spend is clearly being viewed – as it should be – as a revenue generator. This is an upgrade of 0.6 percentage points from the October forecast, with full year spend expected to reach £40.7bn.”
Stephen Woodford, chief executive officer of the Advertising Association, adds: “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.”
The SMP also recently responded to major reforms of Royal Mail’s Universal Service Obligation proposed by Ofcom.
Ofcom released a consultation document, open for responses until April 10th, proposing a range of reforms to Royal Mail’s Universal Service Obligation (USO), designed to ensure it remains financially sustainable while retaining key services.
The SMP is among the organisations that are encouraging individuals and businesses to respond to the consultation before the deadline.
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