In today’s Digest, we cover the latest ad spend forecast from the AA and WARC, Publicis buying HEPMIL Media Group to boost its influencer marketing in Southeast Asia, and US senators pushing to ban teen use of AI chatbots.

Video on demand to drive 17% growth in Q4 ad spend 

According to the latest Advertising Association/WARC Expenditure Report, UK ad spend is poised to climb 7.3% year-on-year to £12bn in the final quarter of 2025. This £814m uplift from Q4 2024 underscores the sector’s pivotal role in bolstering economic activity during the festive period. This year’s total ad spend is forecast to rise 8.2% to £46bn, and a further 6.6% to £49.1bn in 2026.

Video on demand (VOD) is expected to lead the charge with a 17.2% year-on-year increase to £430m. Meanwhile, online formats overall are projected to account for 83% of total spend, 40% of which will go to search, including retail media. Cinema (3.7%), out of home (3.1%), direct mail (0.5%), and radio (0.5%) are also forecast to benefit from seasonal consumer engagement, though the broader TV market may face headwinds due to waning advertiser confidence amid economic uncertainty.

The report also reveals that UK ad spend rose 9.1% to £11.3bn in Q2 2025, with VOD again emerging as the fastest-growing channel, up 23.2% to £373m. Cinema saw a 19.7% boost, and online radio grew 11.2%. 

Director of Data, Intelligence & Forecasting, WARC, James McDonald, said: “The latest AA/WARC forecasts show advertisers continuing to tap into consumers’ digital consumption habits, with online formats now accounting for four in every five pounds spent on advertising in the UK.”

Publicis acquires HEPMIL Media Group to boost SEA influencer marketing

Publicis Groupe has announced an agreement to acquire HEPMIL Media Group, a Singapore-based influencer marketing agency with a network of over 3,000 creators and partnerships with more than 450 brands across Southeast Asia. By integrating HEPMIL’s digital community-building and platform-native content capabilities with Publicis’ data assets, the deal aims to deliver comprehensive, data-driven influencer solutions. 

Clients will gain access to unified social strategy, influencer management, and cross-platform content creation, with enhanced measurement and brand safety. HEPMIL will retain its brand identity and collaborate closely with Publicis teams across Southeast Asia, pending customary closing conditions.

Senators push ban on teen use of AI chatbots

US Senators Josh Hawley  and Richard Blumenthal from the Republican and Democratic parties respectively, have introduced the GUARD Act, a new bill aimed at tightening regulations around AI chatbot usage. The legislation would prohibit individuals under 18 years from accessing AI chatbots and require companies to verify users’ ages through government-issued ID uploads or other “reasonable” methods, such as facial recognition. The proposal follows a recent Senate hearing where safety advocates and parents raised concerns about the influence of AI chatbots on children.

In addition to age restrictions, the GUARD Act would require chatbots to disclose their non-human status every 30 minutes and include safeguards to prevent them from impersonating humans echoing provisions in a similar California law.