The ad industry is contributing a “record amount” to the UK economy when measured by ad investment, gross value added (GVA) to the economy and employment.
That is the key finding in a new report from Credos, the think-tank from the Advertising Association’s (AA), which found the ad industry currently supports over 1.7m jobs across the UK — equivalent to 5% of total national employment.
Notably, 60% of advertising and marketing jobs were found to be based outside London. The north-west is the largest hub outside the capital (12%), followed by the south east (11%) and Yorkshire and Humber (8%).
The report, Advertising Pays 2025, was unveiled at LEAD North on Wednesday in Manchester. It found that, last year, 3.5m businesses spent an estimated £66.6bn on advertising, comprising £42.6bn on media, £7.4bn on agencies and production, and £16.6bn on marketing professionals.
On average, the study concludes, £1 spent on advertising generates a profit return on investment of £4.11 for medium and large-sized businesses and £1.89 for micro and small businesses.
For the wider UK economy, advertising contributed £109bn of GVA last year — equivalent to 4% of the total economy. This includes £17.9bn worth of ad services that were exported in 2024 — second in the world only to the US.
The GVA contribution consists of £31.6bn via the return on investment generated by advertisers from their campaigns, £46.3bn generated directly by the ad industry, £24.7bn from advertising’s supply chains and £6.2bn from the ad-supported media and digital industries.
The UK has particularly seen growth in ecommerce and influencer marketing, according to Credos. The UK’s share of ecommerce in retail sales of goods (30%) is currently the highest in the world, ahead of the US (24%). Meanwhile, the UK influencer market is anticipated to exceed £1bn by 2026.
AA president Andria Vidler commented that the report “contains a valuable set of messages for us all to share about what our industry contributes and provides many answers to those who ask what value the advertising industry brings to the UK”.
She continued: “To my mind, though, these messages not only serve as a baseline to grow from, but they can also be used as a springboard for action to go further and help more businesses and organisations to grow sustainably, to support growth, jobs and exports, all for the long term.”
