In a new The Drum feature examining whether UK ad spend can hold firm against the backdrop of war in Iran and global economic volatility, Carat President Mike McCoy offers his perspective on what the latest AA/Warc data tells us - and what it means for clients.
The latest AA/WARC expenditure report projects UK ad investment will grow 6.6% to £49.8bn in 2026, actually accelerating from last year's 6.4% rise to £46.7bn. With war in Iran disrupting oil prices and inflation, many had expected the numbers to take a hit. So far, they haven't.
The data reflects something Mike sees with clients directly. Consumer journeys have become increasingly spontaneous, and the pressure to show direct sales impact from every pound of marketing spend is only growing. As he puts it: "The reality of consumer journeys being increasingly spontaneous and the increase in instant gratification purchasing is attracting more and more clients who need to justify every penny of marketing spend by showing direct sales impact."
That said, Mike is clear-eyed about the challenges that remain. Parts of the media landscape, retail media in particular, still suffer from inconsistent measurement, limited incrementality evidence and a lack of transparency. His view: "If investment is going to keep growing at this pace, the industry needs to move faster on measurement and consistency across platforms."
Read Mike's full commentary in The Drum.
