The latest Institute of Practitioners in Advertising (IPA) Bellwether Report shows an overall bounce back for UK marketing budgets, although results vary by channel.

Released today (17 July), the data shows the industry has gone from a net balance of -4.8% in Q1, to +5.5% of companies in Q2 revising their marketing budgets up.

However, it warns the growth is being driven “by the more short-term media”, while main media has flatlined this quarter, with “other online activity within this significant category the only segment to show growth”.

“Looking at the broader picture, we welcome the news that UK companies have revised their marketing spend upwards in Q2,” said Paul Bainsfair, IPA director general.

“This uptick in marketing investment not only contributes to the overall health of the UK economy but, for businesses with the foresight to invest strategically, it can also lead to significant growth and competitive advantage.”

Marketing Beat gauges the reaction of industry experts.

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Elie Kauffmann, head of sales, EMEA at digital audio company Audion, said the report “paints a more optimistic picture, with UK marketing budgets rebounding strongly after a muted start to the year”.

“The growth in direct marketing and promotional spend shows that brands are prioritising activation and performance, but also signals their intent to stay agile and closely connected to consumers in a rapidly evolving environment,” he said.

Alexia Nakad, VP brands and commerce media, UK & MEA at LiveRamp, said the findings show “total marketing budgets growing at their fastest pace in a year, with particularly strong gains in direct marketing”.

“Brands are still seeking to drive ROI more effectively through their owned channels as they focus on maximising budget efficiencies. Yet, overall, the total growth in marketing budget spend suggests a balanced approach is being taken, and that data insights learned from paid media are informing owned media strategies,” she said.

“Promotional marketing budgets have now been rising for four consecutive quarters, yet a heavy tilt toward promotional activity should come with some caution. While discounts deliver immediate results, an overreliance on them risks damaging long-term brand equity and cannibalising sales from those willing to pay full price.”

Dom Boyd, managing director of insights at Kantar UK, believes that to cut through with consumers in today’s fragmented media landscape, businesses need to invest in “lots of littles”, rather than putting all our eggs in one basket.

“CMOs have clearly been fighting hard in the boardroom to make the case for resilient marketing spend, but we should be careful about looking at these figures as an outright victory,” he said.

“The weighting towards direct marketing and promotions is a big red flag – short-term tactics can be useful for a quick boost to sales, but they won’t generate sustainable growth on their own.”

Paul Wright, head of EMEA sales at Uber Advertising, said even as economic uncertainty continues, “marketers will be looking to drive efficiency in their budget usage”.

“Therefore, two areas to focus on are standout creativity and media budget utilisation, targeting people, not devices. The latest IPA Bellwether reflects this, with marketers doubling down on engaging visual content to stand out in a noisy media landscape,” he said.

“Our research with Lumen has shown that when you pair rich first-party data with seamless, relevant creative, this can turn fleeting moments of engagement into sustained interaction and action. As the media landscape continues to evolve, those who focus on holding consumer attention through authentic, context-driven campaigns will be best positioned to deliver meaningful business outcomes.”

Phil Acton, country manager UK at Adform, said the latest IPA Bellwether “offers grounds for cautious optimism”.

“Budgets have been fairly robust in Q2, with advertisers rightly keeping their brands in front of consumers to lay the groundwork for further growth, recent figures from the ONS show that inflation remains persistent,” he said.

“To navigate these headwinds, advertisers are having to prioritise effective media. In particular, the report’s respondents highlighted the value of direct targeting in online channels, and the use of AI-driven automation to boost efficiency, reduce costs, and deliver the scale, speed, and insight needed to optimise campaigns.”

Graham Field, chief revenue officer at Outra, said after several years of reduced marketing budgets, “things have turned a corner”.

“The year ahead is looking strong, according to the latest IPA Bellwether report. In particular, the uptick in advertising budgets is a welcome respite for the industry following years of uncertainty – and the innovation that followed – centred on how to connect with consumers while prioritising privacy,” he said.

“Understanding consumers at a granular level, such as through household signals, offers brands a unique opportunity to engage with their audiences during key life moments. Brands that harness this predictive data gain a competitive edge, as it provides the opportunity to get ahead of the decision-making process, enabling them to reach the right people at precisely the right time.”

Julie Selman, SVP, Head of EMEA at Magnite, said the report “highlights a notable expansion in total marketing budgets”, marking the most significant increase since Q2 2024.

“This renewed momentum signals a broader resurgence in advertiser confidence and an evident willingness to invest in brand and performance-led activity. Looking ahead, 2026 is poised to be a pivotal year, with ad spend growth projected to more than double, creating a strong environment for key channels, such as video, to flourish,” she said.

“Among all marketing categories, video emerged as a standout performer. It was one of only two sub-sectors to avoid a negative net balance, with spend stabilising and improving. This resilience reflects the ongoing effectiveness of video as a high-impact, results-driven medium that delivers both scale and emotional resonance.”

Justin Reid, senior director of Global Partnerships Solutions at Tripadvisor, said the report shows a “welcome renewal of confidence”, with “marketing budgets rising and reversing the decline of the previous quarter”.

“This rebound creates an exciting opportunity for brands to think more strategically about how they connect with audiences in meaningful and impactful ways,” he said.

“Now is the time for non-endemic brands to use this budget optimism to collaborate with the right partners and meet consumers where they are, whether through platforms, experiences, or communities that resonate. Understanding consumers means looking beyond age or generation to the life stages that shape their motivations and behaviours.”

Ed Wale, VP International at LG Ad Solutions, said: “The rebound in UK marketing budgets in Q2 signals renewed confidence from brands, with spend directed toward channels that balance creative impact with measurable outcomes.”

He added that a key insight from this quarter’s Bellwether report is “the rising influence of visual content in driving consumer engagement”, especially as marketers “navigate a crowded and fragmented media landscape”.

“Smart TVs and the home screen in particular are playing an increasingly important role in how brands connect with viewers during key discovery moments.

“As audiences come to expect seamless and premium visual experiences, the focus is shifting toward solutions that combine strong storytelling with accountability and performance. The home screen, as a first point of contact, presents a valuable opportunity to achieve both.”

Guy Jackson, chief commercial officer at RAAS LAB, said it was “no surprise to see AI and visual content flagged as key growth areas in the latest Bellwether”.

“In today’s fractured media landscape, they’re becoming the price of entry for effective digital campaigns. However, with online marketing budgets also rising, the battle for attention is becoming increasingly fierce,” he said.

“Automation alone no longer cuts it. What matters now is nuance and using the right tools to deliver relevance at scale. That’s where agentic AI comes into its own. By analysing enriched, impression-level signals from editorial context and imagery to tone and sentiment, advertisers can understand what elements are driving performance and why.”

Mateusz Rumiński, VP of Product at PrimeAudience, said it is “encouraging to see marketing budgets on the rise, despite the geopolitical and economic challenges we have been facing globally in recent months”.

“What is particularly interesting is that direct marketing budgets have increased, showing the ongoing shift towards personalisation and measurement within marketing strategies,” he said.

“Despite Google’s decision not to remove cookies, the industry has moved on, with the report stating that many companies are recognising the need for more direct targeting of audiences.

“In fact, our data shows that 84% of UK marketers are likely to adopt AI-driven predictive modelling to support marketing efforts as user identifiers become less available. This means recognising its use cases and the long-term impact that AI technology can have on marketing efforts. Those who embrace AI tools to refine creativity, boost effectiveness and improve results will be best positioned to thrive in the long term.”

Maciej Kabata, head of sales development and efficiency at RTB House, said the report “indicates that priorities are shifting, with budgets generally on the rise”.

“The long-term growth predicted in Q1 has been proven as we’re now in a period of optimism, with the report showing that marketers have reworked their plans to set themselves up for success,” he said.

“As the report provides anecdotal evidence for the need for businesses to be able to connect with their audiences on a deeper level, prompting an increase in investment in digital channels. AI-driven and programmatic advertising solutions should be at the forefront of this shift. By leveraging these technologies, particularly Deep Learning, brands can create highly targeted campaigns while maximising their engagement and ROI in a digital-first arena.”

Maor Sadra, CEO & co-founder of INCRMNTAL, said marketers “aren’t just cautiously optimistic, they’re increasingly strategic”.

“The flatlining of main media budgets and rising investment in direct and event-led channels reflect a broader shift: brands are prioritising measurable outcomes over traditional assumptions,” he said.

“What’s missing from the Bellwether breakdown, however, is how channels like CTV are quietly becoming performance drivers. Our data shows CTV now delivers up to 10 times the conversions of linear TV using just 60% of the spend, yet too often it’s lumped into ‘video’ or treated like a branding-only play. That’s a disconnect.”

Dean Nagib, UK country manager at Azerion, said, after a challenging Q1, it is “reassuring to see confidence returning to the market with budgets rebounding in Q2”.

“The growth in sales promotion and direct marketing highlights a clear focus on short-term performance, which makes sense given the economic climate,” he said.

“But as long-standing research has shown, brands that balance immediate activation with long-term brand building tend to outperform over time. The real challenge now is maintaining that balance, ensuring today’s marketing efforts drive both quick wins and lasting impact.

“With investment returning, marketers are doubling down on smart, flexible strategies, blending data, creative, and cross-channel planning to deliver now and build for the future.”