IPA Bellwether: UK marketing budgets rise at fastest rate in over two years

UK companies raised their marketing budgets in the third quarter at the fastest rate for more than two years, according to the IPA Bellwether Report published on Thursday. A net balance of 14.3 per cent of marketers revised their budgets up, with 25.6 per cent increasing spend against 11.3 per cent cutting it, almost double the 6.9 per cent recorded in the second quarter and the third quarterly rise in a row, as Decision Marketing reported.

Where marketers are spending more

The rise was broad. Main media advertising hit a nine-year high with a net balance of 9.8 per cent, driven by online advertising other than video, which swung from minus 5.1 to plus 17.2 per cent. Video reached a two-year high at 9.8 per cent, and out-of-home turned positive at 3.6 per cent.

Outside media, PR led every category at 15.3 per cent, a record for the series, followed by events at 15.1 per cent and sales promotions at 13.1 per cent. Market research turned positive for the first time in seven quarters.

Confidence is improving, slowly

Marketers are still gloomier about their industry than their own business. A net balance of minus 20.3 per cent are pessimistic about the wider industry, the best reading in nearly two years, and minus 2.7 per cent about their own company. S&P Global, which compiles the report, raised its forecast for UK adspend growth this year to 2.8 per cent, but cut its 2027 forecast to 1.3 per cent.

Paul Bainsfair, director general of the IPA, said it was “encouraging to see businesses increasing marketing investment at the strongest rate in more than two years”.

Why it matters

The detail is more interesting than the headline. Sales promotions are near a record high just as Les Binet has shown how much of that money is wasted, and the 2027 forecast has been cut almost in half. The pattern looks like businesses spending into a strong end to the year, including the run-up to the Budget and Christmas, while hedging on next year.

It fits every other number this month, from £21bn of digital spend in six months to WARC’s global forecast. Money is flowing back into marketing in 2026. Whether it is flowing into the work that builds brands, or the work that gives a quick sales bump, is a different question.