In today’s Digest, we discuss Meta’s suspension of political ads in the EU and UK advertising rising 8% in the first quarter. We also cover strategic acquisitions in media with Netflix bundling with MBC, and Skydance sealing its deal with Paramount.

Meta suspends political ads in EU

Meta will suspend all political advertising across the European Union starting in October, citing what it calls “unworkable requirements” under the bloc’s upcoming political transparency law. The decision comes ahead of the enforcement of the EU’s Transparency and Targeting of Political Advertising regulation, which imposes stricter obligations on how platforms deliver political and issue-based ads. Meta said it would block ads related to “political, electoral and social issues” across its platforms, including Facebook and Instagram.

Despite pulling political ads, Meta clarified that individuals, parties, and candidates will still be allowed to post political content organically. In a blog post, Meta stated, “We continue to believe online political advertising is a vital part of modern politics. It connects people with information about the politicians who represent them and offers a cost-effective way for candidates to reach voters.”

UK advertising up 8% in first quarter

UK advertising spend rose 8% year-on-year to £10.6bn in Q1 2025, outpacing expectations by 1.4 percentage points, according to the latest AA/WARC Expenditure Report. The growth was led by strong performance in search including retail media which surged 12.3% during the quarter.

Full-year adspend is now projected to reach £45.4bn, representing a 6.8% rise from 2024 and a modest 0.4pp increase from April’s forecast. Despite stagnant GDP growth (1.1% forecast for 2025), the ad market is expected to grow 3.5% in real terms after inflation. Advertising channels set to see growth in 2025 include TV video-on-demand (VOD) (+10.1%), search (+9.4%), online display (+9.2%), cinema (+9.0%), out-of-home (+3.1%), and radio (+1.2%).

Stephen Woodford, CEO of the Advertising Association, welcomed the Q1 results, citing new government policies that position advertising as a growth priority. “Further growth in the first quarter of 2025 is welcome, particularly following the launch of the UK Government’s new industrial strategy which recognises advertising as a priority sector,” he said.

Strategic acquisitions: Netflix bundles with MBC Group; Skydance seals Paramount deal

MBC Group has entered  a partnership with Netflix, marking the US streaming giant’s first bundling deal in the Middle East and North Africa (MENA) region. The agreement brings Netflix into MBC’s newly launched entertainment aggregator, MBCNOW, alongside Shahid platform and MBC’s linear TV channels, under a unified subscription offering.

According to Fadel Zahreddine, group director of emerging media at MBC GROUP, “To have two streaming giants – Shahid and Netflix – come together under one platform is something never seen before in the Kingdom of Saudi Arabia and wider MENA, and we’re very excited for what’s to come.” 

Meanwhile, the US Federal Communications Commission (FCC) has approved the USD$8bn (£5.9bn) merger between Skydance Media and Paramount Global, paving the way for the independent studio to take control of one of Hollywood’s most historic media empires.The companies said the merger is expected to close on 7th August.

Originally announced in 2024, the deal has now cleared its final regulatory hurdle with the FCC’s approval of the broadcast licence transfers for 28 CBS-owned stations to the newly formed entity.  

FCC Head, Brendan Carr announced the decision, endorsing Skydance’s plans to make “significant changes” at CBS and promising a “commitment to unbiased journalism.” 

Mr Carr said "Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change."