After stagnating in the final quarter of 2025, the latest IPA Bellwether data has noted a fresh rise in total marketing budgets in Q1 2026.
Anecdotal evidence indicated that marketing budgets increased due to greater spend on events, branding, targeted campaigns in expanding sectors and new marketing strategies. Greater investment in digital channels was also noted.
IPA Bellwether Q1 2026
According to the latest data, a net balance of +7.3% of respondents revised their total marketing spend upwards in Q1. This was the highest figure in nearly two years.
Additionally, marketing budgets have now been upwardly revised in three of the last four quarters.
Latest data revealed that 26.8% of panellists reported an increase in marketing spend against 19.5% of the survey panel that recorded a reduction.
Notably, more segments of marketing budgets reported growth compared to the preceding quarter.
Events
Events emerged as the leading category for greater marketing investment, outperforming all other segments by a significant margin. In Q1, events recorded a net balance of +14.7%, a substantial increase from last quarter’s +1.4%.
The latest upward revision also surpassed advertising budget forecasts for events for the 2026/27 financial period. This surge reflects an emphasis on client-focused marketing, as events offer direct engagement and relationship-building opportunities.
PR
Bellwether panellists also ramped up spending on public relations, further underscoring the preference for investment in client-based strategies in the first quarter of 2026. The respective net balance rose to +6.0% (up from +3.5% in Q4 2025), marking the highest figure in five quarters.
Main media
More encouragingly, there was a renewed rise in budgets for main media advertising in Q1, following no change in each of the prior three quarters. The net balance climbed to +4.5%, marking its strongest upward revision since Q3 2023.
Underlying data showed that budgets were increased in two of the five tracked categories: other online advertising and video, with both posting a net balance of +5.7%.
However, while the net balance for other online advertising fell from the last quarter (+13.2%), the net balance for video marketing spend rebounded from -5.0% in the previous quarter.
Audio, published and Out-of-home
Elsewhere, marketing budgets for audio, published brands, and out-of-home marketing continued to decline, with net balances of -3.4%, -8.5%, and -11.3%, respectively.
Compared with the previous quarter, audio marketing budgets dropped less sharply (Q4: -10.2%) alongside out-of-home spending (Q4: -17.6%), but budgets for published brands saw a steeper decline (Q4: -6.5%).
Direct marketing
Direct marketing and sales promotions both saw expenditure increase over the quarter, with net balances rising from -4.3% to +3.6% and 0.0% to +2.7%, respectively.
Reductions in marketing spend were confined to market research and other marketing expenditure. The net balance for market research fell from -4.0% to a four-quarter low of -8.5%.
Meanwhile, advertising expenses for other marketing became less of a drag, with the net balance improving from -12.8% to -8.9%
Budget plans for the 2026/27 financial year suggest that marketing executives are slightly more optimistic towards spending prospects than initial data indicated, with the net balance revised up from +1.7% in Q4 2025 to +3.0% in the opening quarter of the year.
According to qualitative data, planned increases in marketing budgets reflect strong business performances, a drive for more sales and leads, and a shift toward channels with better ROI.
Underlying figures show that 28.7% of companies expect their marketing budgets to increase over the coming year, more than the 25.6% anticipating reductions.
However, the latest net balance of +3.0% is the second-lowest since the Bellwether survey began in 2000, beating only the figure recorded for 2009/10 when it plunged to -21.2%.
Outlook
UK growth forecasts were cut at the end of the first quarter, with S&P Global Market Intelligence projecting GDP to expand by 0.5% on an annual basis in 2026, lower than the 0.8% expansion anticipated in the previous quarter.
The downward revision was largely due to the impact of the war in the Middle East. Consumer spending growth forecasts were also revised lower to 0.6% (0.8% previously), and more concerningly business investment is set to stagnate.
The outlook for 2026 has become increasingly uncertain due to ongoing geopolitical uncertainty, but a recovery is expected in 2027 (1.4% GDP growth) and into 2028 (1.6% GDP growth). Nevertheless, forecasts for the coming years have also been revised down compared to the start of 2026.
In contrast, the outlook for advertising spend has strengthened notably. According to the latest figures, adspend growth for 2026 has been upwardly revised to 2.5%, compared to the previous forecast of 1.5%. This is in line with the latest Bellwether data.
This upgrade reflects increased optimism among marketers and a willingness to invest in brand-building and customer engagement, even as the wider economy remains subdued. Momentum is expected to build further in subsequent years, with adspend growth projected to hit 2.7% in 2027 and 2.9% in 2028.
Paul Bainsfair, IPA Director General, said: “These latest Bellwether results defy wider geopolitical uncertainty and signal a bullish start to the year for UK marketing investment. Looking at the detail, it is pleasing to see that budgets for main media are up.
“The evidence is being heeded, even in tougher conditions, cutting back on advertising risks long-term damage.
“It is therefore welcome news that UK companies are holding their nerve and investing to stay front of consumers’ minds, strengthen their brands and drive future growth.”
Maryam Baluch, Economist, S&P Global Market Intelligence, said: “After stagnating at the end of 2025, total marketing budgets returned to growth in Q1, marking a positive start to the year. This rebound occurred despite a surge in price pressures, driven by rising energy costs, which have cast a shadow of caution and concern over the broader economy.
“Nevertheless, marketing executives have demonstrated resilience, concentrating efforts on revenue-generating sectors and prioritising targeted, client-driven campaigns – including more events – to better position their organisations amid ongoing headwinds and uncertainty.
“Budgets for the 2026/27 financial year have also been revised up, underlining a cautious mood of optimism and strategic intent within the industry.
“This upward adjustment reflects not only upbeat forecasts around future market conditions, but also a recognition of the need to invest in growth opportunities and maintain competitive advantage as challenges persist.”