Advertisers are poised to spend a record-breaking £10.5bn on Christmas advertising, according to new data from the Advertising Association (AA) and WARC.

The figure represents a 7.8% increase from last year’s spend of £9.7bn and cements the festive advertising season as the UK’s equivalent of the Super Bowl.

The buoyant figure comes as research from Kantar shows positive sentiment towards Christmas ads is the highest since measurement began. Over half (59%) of people say they ‘love’ Christmas TV ads, up from 51% in 2023.

It is not just advertising professionals who are obsessed with the industry’s festive output. Over half (56%) of consumers were ‘really looking forward to seeing Christmas ads on TV’ an increase from 48% last year.

The AA/WARC ad spend figures show spend for the Q4 season will reach record levels, with online media channels expecting to see a boost including online display (which comprises social media spend) at 15.8%, online radio at 8.8% and broadcaster video on demand (BVOD) at 7.8%. In towns and high streets, out-of-home advertising is expected to see an 8.1% rise in spend and cinema is up 5.1%, in line with new seasonal hits, Paddington in Peru, Wicked and Gladiator 2.

Many of the UK’s biggest brands including John Lewis, Tesco, Sainsbury’s, Waitrose, Marks & Spencer and Boots are releasing blockbuster Christmas ads again this year, alongside global brands such as Amazon, Disney and Coca-Cola.

In 2023, campaigns by Aldi, featuring Kevin the Carrot, and Coca-Cola were broadly recognised as the most effective advertising work of the festive season. Earlier this month, new analysis by the Institute of Practitioners in Advertising (IPA) of the winners of its Effectiveness Awards highlighted three consistent ingredients for Christmas advertising success – fame, emotion and TV – to deliver a greater market share for the advertiser.

Matt Bourn, Director of Communications, Advertising Association, said: “The final quarter of the year is a critical one for businesses, large and small, to promote their wares in a battle for customer attention. The investment we see here in this Christmas advertising spend is an investment in growth which supports jobs up and down the country. As ever, we will see the very best of advertising with all the creative flair that the UK advertising industry can bring to help businesses secure fame and success.”

Lynne Deason, Head of Creative Excellence at Kantar, added: “Advertisers really raised the bar last year, and the festive fervour we’re seeing now reflects that. When it comes to anticipating this year's campaigns, John Lewis remains the powerhouse with one in four people saying it’s the ad that they are most excited to watch.”

She continued: “Last Christmas there was a ramp up in humorous campaigns, a great way to make content stick in our minds. Gone are the days when all brands try to beat John Lewis at their own game with an emotional rollercoaster. There are so many creative ways to entertain people with advertising and that’s what people love so much at this time of year– storytelling, music, humour, celebrities etc - combined with the joy and meaning of the Christmas spirit.”