UK advertising spend is expected to increase during the final quarter of the year, with total investment forecast to reach £12 billion. That is according to the latest expenditure report from the Advertising Association and WARC. This represents growth compared with the same period last year as brands push for sales during the festive season.

Video on demand is set to see the largest increase in spend, rising year-on-year in the fourth quarter. The overall television market is expected to experience decline due to decreased advertiser confidence in economic conditions, though streaming formats continue to attract investment.

Cinema and out-of-home advertising will benefit from festive footfall, with both channels forecast to see increases. The report suggests total advertising spend for the full year is set to rise, with further growth anticipated for the following year.

In the first half of the year, search and online display formats accounted for the majority of total spend. The report attributes this to ongoing investments in artificial intelligence to drive efficiencies and performance improvement across advertising platforms.

Video on demand was the fastest-growing channel in the second quarter, whilst cinema also had a strong period. Online radio saw double-digit growth, though there were declines for linear television, out-of-home and regional news brands.

The Christmas advertising season represents a critical period for brands during peak retail trading, with the sector expected to continue growing despite ongoing economic uncertainty.