Despite global geopolitical tensions and rising energy prices, marketing budgets held fast and rose again in the UK, according to the IPA Bellwether Report for Q1 2026.
Always a closely watched barometer of the economy, we’ve been canvassing some of the UK’s leading voices across adland for their take on the latest readings for the marketing sector…
Jaye Cowle, CEO & Founder, Launch
“The Q1 Bellwether numbers are a welcome sign but if you’re working in performance marketing right now, you’ll know the market feels more cautious than +7.3% suggests.
“What we’re seeing across our client base is a real shift in how people are shopping. The US/Iran conflict, rising fuel prices and the daily unpredictability of US trade policy have knocked consumer confidence.
“Research from The British Retail Consortium in March found that 64% of UK adults expect the economy to get worse over the next three months. That kind of sentiment changes buying behaviour, even before it hits people’s pockets, and we’re seeing it in the data.
“We’re seeing the path to purchase getting longer, shoppers are looking for reassurance, comparing more, reading more reviews and pulling back on impulse buys. Basket sizes are feeling the squeeze too with average order values showing a decline.
“For marketers, the instinct is to double down on conversion to drive revenue but when the buying journey stretches, that only addresses part of the problem. Mid-funnel activity – building consideration and trust over a longer period – deserves real attention right now.
“Messaging also matters more in this climate with a focus on value, quality, social proof and making the purchase journey as easy as possible. Reviews, clear returns policies and transparent delivery costs all reduce the hesitation that’s costing conversions.
“Keep experimenting too! It helps reduce risk by testing creative and messaging at every stage, as long as you have proper measurement behind it.
“The most important piece of advice we’d give any marketer right now: don’t retract, respond. Consumer demand hasn’t disappeared, it’s just become more cautious. The brands that stay visible and stay calm will be the ones best placed to grow when confidence returns.”
Ian Henderson, CEO, AML
“While the latest Bellwether data points to a welcome rebound in marketing investment, the underlying picture remains complex. Growth is clearly being driven by more specialist, targeted approaches as brands look for measurable impact in an uncertain environment.
“At the same time, the continued caution around broader economic conditions and ongoing geopolitical pressures means this is far from a full return to confidence.
“We are certainly seeing a move away from big-agency generalist solutions to a smarter allocation of budgets, with businesses prioritising agility, ROI and closer human engagement from their agencies.
“The opportunity now is to help clients navigate that balance: supporting growth ambitions while maintaining discipline and focus in a volatile environment.”
Adrienn Major, Founder, POD LDN
“It’s encouraging to see that budget forecasts are (even slightly) trending upwards. For me in particular, the continued growth in video is a really positive signal, as it’s majority of what we produce.
“That said, we haven’t fully felt that shift translate into project volume just yet, so it’ll be interesting to see how quickly this momentum reaches production companies and agencies.
“Hopefully, this uplift can bring about more opportunities and sustainable growth for talent as well. So I’m cautiously optimistic – but will be definitely watching closely.
Alexander Igelsböck, CEO, Adverity
“The latest IPA Bellwether report offers a welcome dose of optimism. Seeing marketing budgets rising at their fastest pace in two years despite economic headwinds is a testament to the industry’s resilience. It wouldn’t be a far cry to say that much of this confidence is tied into the transition of AI tools from experimental pilots to driving real outcomes.
“However, this spend will only translate into revenue if marketers build on improving their use of data which the report cites as a strong opportunity. In fact, our recent research has shown that most marketing data is inaccurate or inconsistent.
“To get the most out of this increased spend, marketing leaders need to ensure their teams layer new technology on top of complete and consistent data systems.
“More doesn’t always translate to better so before scaling investment further, the ‘unglamorous’ work of cleaning and unifying data will lay the foundations for further success.”
Suzanna Chaplin, CEO & Founder, esbconnect
“This report will come as music to the ears of UK advertisers and the industry that supports them. After a shaky start to 2025, two positive quarters gave cause for optimism, which proved to be a false dawn when the so-called Golden Quarter (Q4) came in flat.
“The Q1 2026 figures look much healthier but there is still plenty of reason for budget-holders to think carefully about where to make their investments.
“I think this year we will see companies doubling down on proven channels like email and online, while hopefully always setting aside a small proportion of the budget to try new things and steal a march on those competitors who only ever play it safe.”
Morten Ingemann, CEO & Partner, Worth Your While
“The best time to invest in your brand is exactly when everyone else is too scared to. Turns out, more companies know that than we expected, budgets up at the fastest pace in nearly two years, in the middle of a cost crisis and a world on fire. Pleasantly surprised? A little. Nerve always was worth your while.”
Victoria Usher, CEO and Founder, GingerMay
“The latest Bellwether findings illustrate a shift in how marketers are prioritising spend, with an increasing emphasis on channels that can build credibility and can sustain impact over time. Within this context, PR continues to strengthen its role as a key investment area.
“As search evolves through generative AI, GEO continues to emerge as an important performance driver. AI systems increasingly surface content that is authoritative, well-sourced and widely referenced, which increases the importance of strong editorial coverage, expert thought leadership commentary, and consistent brand narratives.
“PR today is not just reputation management but is also a key channel in how brands are discovered and interpreted across traditional media and AI-driven environments. As a result, earned media is becoming a critical driver of visibility, trust, and long-term commercial performance.”
Mick Rigby, Founder and CEO, Yodel Mobile
“The Bellwether findings highlight a shift in how marketers are rightly approaching growth with greater focus on performance, accountability and long-term business value.
“As budgets continue to invest more in digital channels, the real question is how brands build more durable and sustainable growth. Apps are becoming central to that answer. Consumers are moving there quickly, and younger audiences especially are making it their default. The opportunity for brands is significant, but so is the urgency.
“In a market where loyalty is ever harder to earn and far easier to lose, apps offer an environment where brands can create real stickiness with users, building engagement that’s habitual and a more direct relationship with their audiences.
“The challenge is that many still approach apps, and consequently app marketing, tactically, rather than as a core part of their growth strategy. The brands that get ahead are those that plan and prioritise app growth from day one, aligning product, marketing and data around long-term outcomes, not short-term wins.”
Sophie Bell, MD, Toast
“The increased spend in video reflects brands investing more deeply in customer engagement through emotion.
“Spend on Events & PR has already demonstrated the appetite for real, tangible stories to build genuine emotional connection. Video delivers that same impact, but at scale.
“There may also be a GEO dimension at play. If AI‑driven discovery increasingly rewards brands based on what others say about them, then video‑led storytelling that sparks conversation, trust and advocacy becomes an investment in reputation‑building as much as reach.
“Authentic human experience informs, builds trust, reaches new audiences and turns people into advocates.
“As attention continues to shift away from traditional mainstream advertising channels and towards online content shaped by creators and communities, increasing spend in video looks like a strategic response to how trust, influence and attention now work in today’s landscape.”
Hugo Welkers, CEO, Refinery89
“The latest Bellwether data shows marketing budgets returning to growth, but the nature of that spend is shifting. The two fastest-growing categories – events and PR – are both engagement-first channels. Budgets are moving toward meaningful interaction, not just reach.
“For digital publishers, the challenge is no longer about attracting more demand, but proving what happens during the impression. As buyers become more selective, engagement quality (time spent, attention, consideration impact) is becoming the metric that matters. Not all inventory carries the same weight.
“We’re seeing a clear move from volume-driven buying to quality-driven investment. Advertisers are prioritising environments where audiences are actively engaged – not passively scrolling, but immersed in content they choose. Publishers that maximise impressions at the expense of user experience risk devaluing their inventory.
“The opportunity is in fewer, higher-quality placements that deliver measurable mid-funnel impact. In a market where spend is growing but under pressure, the winners will be those who prove quality, not scale.”
Crispin Beale, Worldwide CEO, IDX
“Marketers are spending more deliberately with clearer intent behind every decision. What stands out from the data is the increased appetite for channels and strategies that show a clearer line between investment and a commercial impact in performance.
“Budgets are still under pressure, so performance is no longer about chasing cheap reach or isolated clicks; it is about using data, AI-driven optimisation, and technology coupled with creativity to drive measurable commercial outcomes.
“The increase in online and video spend reflects that shift. Brands are looking for smarter ways to turn media into growth, whether that means improved customer acquisition and conversion, or more efficient scale across the marketing funnel.
“Just as importantly, the strength in events and PR shows that performance is extending beyond paid media. The most effective marketers are connecting brand, demand and customer engagement rather than treating them as separate disciplines.
“While there is still caution in the market the direction is clear: every pound has to work harder and prove its worth.”
Tom McKay, Director, Client Success & Strategic Growth, Covatic
“The latest Bellwether figures signal a clear shift from caution to strategic reinvestment, with total marketing budgets rising at their fastest pace in nearly two years.
“This +7.3% net balance confirms a resilient start to 2026, shaped by a ‘flight to accountability’ as executives prioritise sectors and channels that can demonstrate a tangible return on investment.
“Video is already emerging as a primary beneficiary of this trend, successfully reversing a previous decline to post a +5.7% net balance in the opening quarter.
“While addressable audiences and outcome-based measurement are still maturing across the board, Connected TV (CTV) is poised to lead this evolution over the next 12 months.
“By bringing the precision of digital targeting to the big screen, CTV has the potential to draw spend away from traditional walled gardens.
“This shift aligns with a broader industry move toward practical AI and advanced data use, as brands look to sharpen customer targeting and secure market share.”
Paul Samuels, President – Global Partnerships, AEG International
“As the digital landscape becomes increasingly crowded and overwhelming for consumers, brands are understandably turning to alternative strategies to cut-through the noise.
“AI continues to cut out the middle man when it comes to product discovery, brand equity is becoming more important for stimulating consumer preference – and there is a limit to how far the fleeting interactions of traditional advertising can go in developing understanding.
“The desire to build lasting, meaningful relationships with consumers is one of the primary factors underpinning the consistent increase in events budgets over the past few years.
“Brands’ appetite for events is reflected by growing competition in the partnership market, with live entertainment in particular providing a prime opportunity for them to share their identities and build trust with audiences when they are already highly engaged and attentive.
“The less transactional nature of events is part of the appeal, with brands afforded more time to engage with audiences as part of a two-way conversation.
“Taking festival activations as an example, average dwell time can be over 20 minutes when brands get it right, giving them invaluable moments to show fans what they stand for, find common ground and build a rapport in a memorable environment.”
Daniel Todaro, CEO, Gekko Group
“Sales promotions often benefit from the ‘use it or lose it’ mindset that emerges as brands head towards the end of their financial years – and we see this reflected in Q1’s upward revisions.
“As well as being quicker and easier to activate than campaigns across other marketing channels, and promotions also offer a way to hit end of year targets and clear excess stock.
“This year, brands have also faced the challenge of low consumer confidence and restricted spending against a backdrop of geopolitical uncertainty. At times like this, brands often lean on sales promotions as a way to retain customers as they compete for a larger piece of a small pie.
“Economic challenges also underpin lower spending intentions throughout 2026/27, as promotions actively undermine efforts to increase average selling prices, whilst running the risk of devaluing the brand through persistent discounting.
“As sales promotions take a back seat, events continue to flourish as marketers focus on building brand equity. Creating experiences that resonate with consumers – particularly Gen Z – and make them feel valued is increasingly seen as the best way to foster loyalty, trust and long-term advocacy – showing the focus on long-term investment over short-term gain.”
Sam Fellows, Managing Partner, Gain Theory
“The increased spending on Events and Public Relations (PR) is consistent with what we’re seeing. Brands recognise the opportunity that experiential marketing and event sponsorship provide to increase differentiation and to reach, engage, and cultivate younger audiences.
“At the same time, they’re increasingly focused on measuring the effectiveness of these activities, generating insights, and enhancing activations to drive commercial value.”
Debbie Oates, Director of Customer Engagement, Experian Marketing Services
“As marketing budgets start to recover, the focus is shifting from volume to value, with greater emphasis on targeted, performance-driven investment. In this environment, AI will play an increasingly important role in driving efficiency and effectiveness.
“As the report highlights, AI is moving from experimentation to application with businesses now incorporating the technology into their daily workflows to strengthen targeting and deliver more granular insights.
“What matters now is not just the deployment of AI – but the right foundations behind it. Accurate data, persistent identity and human governance are critical to ensure AI-driven outcomes are reliable, actionable and provable.
“The organisations that will win are those that can act with confidence – knowing their decisions are grounded in real people and lived behaviour – not assumptions or proxies. AI should amplify human judgement, not replace it, and appropriate oversight is essential to making that a reality.
“In a climate where every pound of marketing spend is under greater scrutiny, strong data foundations, identity and governance help ensure AI supports informed decision‑making, not just speed or scale.
“This enables brands to move beyond broad targeting to deliver more relevant, personalised experiences, smarter optimisation and better ROI in an evolving landscape.”
Ed Bristow, VP Business Development, EMEA, Adlook
“The IPA Bellwether Report reflects growing confidence in marketing investment, but also a shift in expectations. Now more than ever, marketers are under scrutiny to deliver returns against every ad dollar.
“The pressure to prove value may make it tempting to retreat to traditional media metrics for campaigns because they feel safer, and will provide the numbers that impress the CFO.
“But this doesn’t tell the full story. Using targeting approaches that are based primarily on past behaviour is flawed. It treats the consumer as a static subject, looking only backwards. It overlooks a core trait – they are dynamic and always evolving. Training a model on outdated consumer data leads to inefficient spend.
“Understanding intent provides far better insight and therefore, value for scrutinised budgets. An ad campaign that is optimised in real time, analysing the relationships between content, context, attention and behavioural outcomes, paints a true picture of its impact.
“This allows marketers to make decisions during the campaign, not just evaluate it afterwards. As the industry looks to continue this trajectory, it’s important that budgets are spent on campaigns that will actually drive business outcomes, not just reportable metrics.”
Mark James, CRO, Converge
“The latest report shows that marketing and media choices are getting sharper. In a fragile economic environment, budgets are being pulled towards channels and tactics that can drive value quickly. Anything less accountable is slowing down.
“At the same time, agencies are quickly casting off the ‘L’ plates when it comes to the everyday use of AI/ML. It’s becoming part of how we plan, buy and optimise campaigns day-to-day. For independent agencies, this shift in gear feels particularly significant.
“Agentic AI tools are helping to eliminate complexity right through the media journey, so teams can move faster, optimise in real time, and focus spend where it drives the most impact.
“In an uncertain market like this, where there’s always the threat of a handbrake turn, the advantage really comes down to being able to move fast, without breaking things(!), and show what’s working. The teams that can do both will be the ones that stay ahead.”
Emma Jowett, RVP Northern Europe, Integral Ad Science
“In a market where ad spend is under constant scrutiny we’re seeing an even clearer shift to putting ad spend where it can make the most measurable impact.
It’s no longer enough to just reach larger audiences and rely on post-campaign metrics to understand if your ad was seen or engaged with.
“Advertisers need to be leveraging media quality as an engine for growth: optimising campaigns towards the impressions that will truly cut-through in trusted, relevant environments that drive real impact.
As more investment flows into digital formats like online and video, with both formats showing a net balance of +5.7%, the focus has to be on making those impressions count.
“For marketers, prioritising quality and transparency, brands can cut through inefficiency, generate revenue and drive stronger outcomes, even in tougher economic conditions.”
Lukas Schneider, Director of Campaigns & Products, MINT Square
“The increase in online advertising investment is no surprise, especially while social media continues to command such a large share of spend.
But as premium channels like CTV gain momentum, advertisers have a real opportunity to diversify beyond the most saturated platforms.
“For media buyers, greater access to programmatic tools will be critical to reaching these environments efficiently, while keeping tighter control over budgets and unlocking valuable new audiences.”
Emma Lacey, SVP Sales Demand EMEA, Onetag
“The growth in budgets for online and video advertising presents a significant opportunity for marketers who remain keen to connect their spending directly to measurable outcomes.
“Creative strategy is experiencing a resurgence, driven by interactive and immersive ad creative that is transforming advertising from a static output into a rich source of actionable insights to optimise marketing campaigns. This shift is equally significant for publishers: when marketers prioritise performance, it drives stronger demand and improved yields.
“In turn, this strengthens publisher content and their role as creators and providers of information and quality journalism. In periods of geopolitical uncertainty, it becomes even more important to recognise how advertising can support high-quality publishers and trusted news content.”
Tom Stone, co-Founder, re:act
“Bellwether’s results feel like a useful reminder that gloomy headlines do not always translate into frozen consumer demand.
“Even in periods of wider uncertainty, people still look for enjoyment, distraction and small moments that feel worth spending on. That is often where brands find their opening.
“What is especially interesting in this quarter’s data is that the growth story is not sitting neatly in one channel. Events may be leading on paper, but much of their value now comes from how easily they travel.
“A live moment does not stay live for long. It moves into social, into content, into conversation and into wider brand visibility. That is why the rise in events spend should also be read as a sign of confidence in digital amplification.
“For global businesses chasing growth, the UK is starting to look like a market where that joined-up model still has real momentum.”
Sarah Lawson Johnston, Managing Director EMEA, Vudoo
“The report identifies AI efficiencies as a vital opportunity for retail in 2026.
“No surprise there. But are marketers investing their AI budgets in retail in the most effective way?
“True value for retail, or rather, for commerce, lies in embedding AI as an operating model that quietly optimises the entire retail workflow and manages the growing complexity of commerce logistics.
“The way people shop has changed, and AI agents have certainly accelerated that. The days of the linear path to purchase and retail media as a standalone revenue stream are evolving.
“AI presents an opportunity to move with this new journey, to connect live product data and shoppable formats across every surface, so that the consumer experience is seamless, allowing them to act on their intent – wherever they happen upon your brand’s content.”
Marcus Brown, CEO & Founder, The Great Pitch Company
“This is genuinely encouraging news, particularly given the wider geopolitical and economic uncertainty.
“It suggests the long-standing case for sustained brand investment through tougher periods is finally being recognised.
“At The Great Pitch Company, we see time and again that businesses which maintain momentum, through creativity, consistency and belief, are the ones that unlock growth when others pull back.”
Piero Pavone, Founder and CEO, Preciso
“This is an encouraging set of figures, including the first rise in main media ad spend in four quarters. Not surprisingly, this was driven primarily by increases in online and video spending, as advertisers seek out consumers where they spend more and more of their time.
“For those advertisers committed to online I would suggest that they now look beyond what they have always done and experiment with different ad formats like native that are proven to deliver cut-through in a crowded, noisy environment.”
Max von Weber, Founder and CEO, Adnomaly
“I was encouraged to see a growth in main media ad spend – the first in four quarters – in the latest IPA Bellwether report.
“To me, this says that, whatever the economic and geopolitical turmoil out there, brands know they need to keep front of consumers’ minds to win new business.
“It’s also worth noting where they are spending too, with increased investment in online – known for its accountability – and in video, which confirms the increasing importance of the creators and influencers who are producing so much of this video content, to advertisers’ media plans.”
Sarah Cutler, Chief Growth Officer, makemepulse
“After a period of understandable caution, the appetite to invest is returning which is always good news. With the economy still complex, I suspect this will come with greater scrutiny on how and where those budgets are spent.
“It’s encouraging to see marketing budgets opening up again, particularly with more going into events and PR which tracks with the shift toward customers community as a hot topic.
“We’re seeing that translate into a renewed focus on experiences that use technology to bring people together not just as one-off moments, but as part of something bigger, real-world activations that bring the ‘WOW’ and that people can share and enjoy.
“I’m particularly interested to see which CMOs and brands lean into this. Challenging conditions often create the space for real creative bravery and that’s where differentiation tends to happen.”
James Clee, Head of Strategy, DUDE London
“There’s a clear note of optimism in this report, and crucially, some clues about the future shape of creative agencies. No surprise to see more growth in digital & social, but an interesting signal is the investment in genuine rarity and curation – events, PR, experiences.
“As AI and platforms drive the commodification of efficiency, the value of novelty, of scarcity, of the danger of original thinking increases.
“As the digital world becomes more important, so too does the value of “meatspace”. The future belongs to the agencies who can successfully bring these two worlds together.”
Anthony Clements, Country Manager, impact.com
“I think a lot of people will be pleasantly surprised by the results of the latest IPA Bellwether report.
“After a flat Q4, I imagine few expected such a strong net balance (7.3%) of companies reporting increased marketing spend in Q1, particularly with the events unfolding in the Middle East.
“These are sure to have some impact on advertiser confidence going forward, but for the moment, we should celebrate the fact that advertisers are still spending, and investing their budgets wisely in more accountable channels such as online, and in the type of content – video, much of it produced by creators and influencers – that they know consumers really engage with.”
Tristram MacDonald, VP Programmatic, Jellyfish
“Looking at client investments, we can see that there has been a marked shift in brands’ confidence in not only understanding their consumers but also pushing into channels with traditionally stronger targeting and deeper responsiveness from consumers, such as direct marketing, online and video.
“The digitisation of video also means it is not likely to see the same falls in spend as traditional offline channels like audio and OOH.
“OOH spend is interestingly seeing a slower reduction which we expect to see continue and hopefully begin to reverse, with major outdoor events in the summer driving interest from brands in being seen in key locations.
“Also, as more brands get comfortable with Digital OOH offerings we can expect to see excited new players in this field as traditional digital teams expand their remit into new fields
“Overall, the year looks to have started in good spirits for the industry, but ultimately the timing of how quickly events in the middle east resolve will be critical to how the second half of the year plays out, as we know through experience how impactful energy costs can be on consumer spending in winter months.”
Kate Maidment, Executive Director, MNSTR
“Bellwether’s latest results reflect a shift that has been developing for some time: brands are placing more investment behind in-person experiences as a core pillar of their brand-building marketing strategies.
“After an extended period of digital overload, there is growing value in experiences which are ‘made for humans, by humans’, providing more targeted, directional interactions with their audiences.
“That matters for brand-building, but it makes commercial sense too. Well curated experiences are high impact, and multi-purpose with measurable results, driving direct, meaning engagement, creating organic content for wider reach and leveraging partnership opportunities to connect authentically with their community.
Nick Henthorn, Global Head of InfoSum at WPP
“The latest IPA Bellwether Report confirms what many of us in the industry were already aware of – advertising has officially moved beyond the ‘AI hype’ phase.
“The shift to more practical integrations is a logical response in a market where accurate measurement and better targeting are non-negotiable.
“However, AI is only as powerful as the intelligence driving it. To achieve the ‘improved use of data’ that respondents crave requires genuine collaboration across media companies, brands, and tech partners.
“This connectivity empowers brands to build foundational, proprietary intelligence for AI models and agentic systems that power stronger creative, more effective campaigns, and measurable outcomes.”
Sarah Robson, Global Head of Advertising Effectiveness, On Device
“If these increased budgets are to result in sustained growth for the rest of the year, marketers will want to monitor how spend performs closely.
“There is a sense of cautious optimism as brands are leaning into digital, particularly online and video where engagement has remained consistent over the years.
“However, the landscape is far from reliable and predictable. Channels like streaming and CTV are highly fragmented, making it critical to understand not just overall performance, but how each channel contributes to specific marketing objectives. Without this level of clarity, it becomes difficult to allocate budgets effectively or scale what’s working.
“Equally important is the need for timely insight. If results are only reviewed at the end of a campaign cycle, marketers risk missing a valuable optimisation window where adjustments could have significantly improved outcomes.
“In the current climate, having access to accurate, real-time data and actionable performance insight is essential in ensuring that decisions are both informed and made at the right moment.”