UK media agencies increased investment in YouTube advertising in 2025 and plan to maintain or expand budgets in 2026, with Connected TV (CTV) emerging as the platform’s fastest-growing application, according to Pixability‘s survey of 117 UK-based media agency professionals conducted in November 2025.
The research shows 54% of agencies reported increased YouTube investment in 2025 compared to 2024, while 46% anticipate further increases in 2026.
Only 1% expect decreased spending next year, down from 7% who reduced budgets in 2025.
Platform Investment Trends
The survey reveals broader shifts in video advertising spend across platforms.
Connected TV saw the strongest growth, with 69% of agencies reporting increased investment in 2025. YouTube followed at 54%, while TikTok and Meta platforms accounted for 42% and 32%, respectively. Linear television continued declining, with 24% of agencies reducing spend and only 13% increasing investment.
“The shift in spend from Linear TV to CTV continues as 69% of agencies saw an increase in CTV spend, and 54% saw an increase in YouTube spend in 2025,” the report states. “Meanwhile, only 13% of respondents saw an increase in traditional TV advertising, and 24% indicated they had a decrease.”
Brand Suitability Concerns
Brand suitability remains the top priority for UK agencies executing YouTube campaigns.
When asked to estimate unsuitable content exposure without third-party brand suitability measures, agencies indicated approximately 30% of campaign impressions would run on inventory misaligned with advertiser values.
The survey identified Made-for-Kids content as a significant concern: 86% of agencies seek to avoid it when targeting adults, the same percentage that wants to avoid completely unsafe content. Other avoidance priorities included content unsuitable for specific advertisers (73%), off-target language content (66%), and controversial creators (65%).
Eleanor Hill, Director of Digital Performance at Medialab, stated: “Brand suitability will always matter, but ultimately, clients are focused on outcomes. When we can demonstrate more advanced contextual targeting, it gives clients greater confidence that their budgets are working harder.”
CTV Integration Accelerates
YouTube’s role in CTV campaigns has grown notably.
The percentage of agencies planning to use YouTube on TV screens jumped from 23% in 2025 to 85% in 2026, nearly quadrupling year-over-year.
Among agencies incorporating YouTube into CTV/TV campaigns, 64% include TV broadcast content, 58% select publishers producing TV-quality material, and 54% target high-value creators. Only 3% believe no YouTube content belongs in TV/CTV campaigns.
Matt Ryan, Strategic Partnerships Lead at Dentsu London, commented: “YouTube is no longer just a stand-alone video platform. It’s a social platform through Shorts, a CTV platform appearing on TV screens across the world, and a demand gen platform driving real business results.”
Multi-Channel Positioning
Agencies now categorize YouTube across multiple channel types rather than solely as a video advertising channel.
The research shows 74% classify YouTube as a stand-alone video platform, 73% as a Connected TV platform, 51% as a social media platform, and 28% as a direct response channel.
YouTube Shorts adoption continues to expand, with 64% of agencies planning to incorporate the short-form format in 2026, up from 60% in the previous study.
Agency Team Structures
Agency organizational structures around video advertising are changing.
Currently, 40% separate CTV and YouTube teams from linear television; 30% separate CTV and linear while isolating YouTube; 25% maintain unified teams across all formats; and 16% operate standalone CTV teams.
Looking ahead, agencies expect consolidation: 45% plan to unify CTV, YouTube, and TV teams, while 34% plan to combine CTV and YouTube while separating linear.
Third-Party Certification
Agencies emphasized the importance of certified partners, with 85% stating that third-party YouTube partners should hold YouTube Measurement Program (YTMP) certification to ensure brand suitability and contextual targeting. Only 8% considered certification unimportant.
Creator and Organic Alignment
Despite limited current integration, agencies recognize the value in coordinating paid advertising with other YouTube activities.
However, 66% of agency teams managing YouTube advertising have no involvement in creator sponsorships, channel management, or YouTube insights.
Among those seeing strategic value, 55% believe YouTube ad campaigns should align with creator/influencer efforts, though only 21% currently implement such alignment. Similarly, 59% think ad campaigns should incorporate learnings from brands’ organic YouTube strategies, with 26% actively doing so.
AI Adoption Patterns
AI usage in ad creative varies by application.
Currently, 41% of agencies report clients using AI-generated voiceovers, 31% employ AI remixing of existing content, 28% use text-to-video for graphics, and 27% utilize AI script and storyboard generation. Only 16% create videos with AI-generated human characters.
Regarding AI-generated content as ad placement, 64% accept high-quality AI content without misinformation, while 34% reject AI-generated inventory regardless of quality, and 2% accept AI regardless of quality.
Investment in AI differs by agency type. Among holding company agencies, 47% invest “very heavily” in AI compared to 14% of independent agencies.
The survey included respondents from both holding company agencies (69%) and independent agencies (31%), with roles spanning account directors (25%), account managers (24%), department heads (14%), and C-level executives (5%).
Image source: Pixability The full report is available here
David Adler is an entrepreneur and freelance blog post writer who enjoys writing about business, entrepreneurship, travel and the influencer marketing space.
UK media agencies increased investment in YouTube advertising in 2025 and plan to maintain or expand budgets in 2026, with Connected TV (CTV) emerging as the platform’s fastest-growing application, according to Pixability‘s survey of 117 UK-based media agency professionals conducted in November 2025.
The research shows 54% of agencies reported increased YouTube investment in 2025 compared to 2024, while 46% anticipate further increases in 2026.
Only 1% expect decreased spending next year, down from 7% who reduced budgets in 2025.
Platform Investment Trends
The survey reveals broader shifts in video advertising spend across platforms.
Connected TV saw the strongest growth, with 69% of agencies reporting increased investment in 2025. YouTube followed at 54%, while TikTok and Meta platforms accounted for 42% and 32%, respectively. Linear television continued declining, with 24% of agencies reducing spend and only 13% increasing investment.
“The shift in spend from Linear TV to CTV continues as 69% of agencies saw an increase in CTV spend, and 54% saw an increase in YouTube spend in 2025,” the report states. “Meanwhile, only 13% of respondents saw an increase in traditional TV advertising, and 24% indicated they had a decrease.”
Brand Suitability Concerns
Brand suitability remains the top priority for UK agencies executing YouTube campaigns.
When asked to estimate unsuitable content exposure without third-party brand suitability measures, agencies indicated approximately 30% of campaign impressions would run on inventory misaligned with advertiser values.
The survey identified Made-for-Kids content as a significant concern: 86% of agencies seek to avoid it when targeting adults, the same percentage that wants to avoid completely unsafe content. Other avoidance priorities included content unsuitable for specific advertisers (73%), off-target language content (66%), and controversial creators (65%).
Eleanor Hill, Director of Digital Performance at Medialab, stated: “Brand suitability will always matter, but ultimately, clients are focused on outcomes. When we can demonstrate more advanced contextual targeting, it gives clients greater confidence that their budgets are working harder.”
CTV Integration Accelerates
YouTube’s role in CTV campaigns has grown notably.
The percentage of agencies planning to use YouTube on TV screens jumped from 23% in 2025 to 85% in 2026, nearly quadrupling year-over-year.
Among agencies incorporating YouTube into CTV/TV campaigns, 64% include TV broadcast content, 58% select publishers producing TV-quality material, and 54% target high-value creators. Only 3% believe no YouTube content belongs in TV/CTV campaigns.
Matt Ryan, Strategic Partnerships Lead at Dentsu London, commented: “YouTube is no longer just a stand-alone video platform. It’s a social platform through Shorts, a CTV platform appearing on TV screens across the world, and a demand gen platform driving real business results.”
Multi-Channel Positioning
Agencies now categorize YouTube across multiple channel types rather than solely as a video advertising channel.
The research shows 74% classify YouTube as a stand-alone video platform, 73% as a Connected TV platform, 51% as a social media platform, and 28% as a direct response channel.
YouTube Shorts adoption continues to expand, with 64% of agencies planning to incorporate the short-form format in 2026, up from 60% in the previous study.
Agency Team Structures
Agency organizational structures around video advertising are changing.
Currently, 40% separate CTV and YouTube teams from linear television; 30% separate CTV and linear while isolating YouTube; 25% maintain unified teams across all formats; and 16% operate standalone CTV teams.
Looking ahead, agencies expect consolidation: 45% plan to unify CTV, YouTube, and TV teams, while 34% plan to combine CTV and YouTube while separating linear.
Third-Party Certification
Agencies emphasized the importance of certified partners, with 85% stating that third-party YouTube partners should hold YouTube Measurement Program (YTMP) certification to ensure brand suitability and contextual targeting. Only 8% considered certification unimportant.
Creator and Organic Alignment
Despite limited current integration, agencies recognize the value in coordinating paid advertising with other YouTube activities.
However, 66% of agency teams managing YouTube advertising have no involvement in creator sponsorships, channel management, or YouTube insights.
Among those seeing strategic value, 55% believe YouTube ad campaigns should align with creator/influencer efforts, though only 21% currently implement such alignment. Similarly, 59% think ad campaigns should incorporate learnings from brands’ organic YouTube strategies, with 26% actively doing so.
AI Adoption Patterns
AI usage in ad creative varies by application.
Currently, 41% of agencies report clients using AI-generated voiceovers, 31% employ AI remixing of existing content, 28% use text-to-video for graphics, and 27% utilize AI script and storyboard generation. Only 16% create videos with AI-generated human characters.
Regarding AI-generated content as ad placement, 64% accept high-quality AI content without misinformation, while 34% reject AI-generated inventory regardless of quality, and 2% accept AI regardless of quality.
Investment in AI differs by agency type. Among holding company agencies, 47% invest “very heavily” in AI compared to 14% of independent agencies.
The survey included respondents from both holding company agencies (69%) and independent agencies (31%), with roles spanning account directors (25%), account managers (24%), department heads (14%), and C-level executives (5%).
Image source: Pixability
The full report is available here