The latest IPA Bellwether shows an icy frost has gripped the UK marketing and media sector ahead of the first Autumn Budget from the new Labour Government.
Will it lead to a big freeze, or just a winter pause for the sector?
We’ve gathered comments from some of the leading lights in the advertising, brands, media, marketing and adtech sectors…
Ross Cafferkey, Founder Research Clever
“After a strong year for market research budgets, uncertainty ahead of the budget seems to have had an impact on the sector, as with many other areas of marketing.
“However, around three quarters of respondents said there was actually no change to their market research budgets, which is much more akin to what we’ve experienced at Research Clever.
“As marketing strategies are being put together for the year ahead, many of our clients are using market research to support their plans, so we’ve actually seen a spike in enquiries in recent days.
“As Paul Bainsfair says, this seems to be more of a “pressing pause” than a chop – there will always be a place for strong and useful data, nimble agencies and effective marketing.
“As I write, the day’s news is that the rate of inflation has fallen further than analysts predicted, showing some more green shoots. So, I’ll be watching what happens in Q4 with interest but not with pessimism.”
Justin Reid, Snr Director, Global Partnerships Solutions, Tripadvisor
“This quarter’s report showcases caution from marketers ahead of the first Autumn budget from the new government. While it may mean they’re pausing how they spend their budgets, this shouldn’t come at the expense of the consumer.
“As cited, consumers crave experiences, and for marketers, this makes it an ideal opportunity to engage with audiences. When it comes to travel, there are six stages of opportunity for brands to reach audiences with a seamless experience.
“Whether dreaming about their trip or booking it, brands of all kinds can tap into these moments when consumers are willing to spend.
“Furthermore, the report highlights that travel and entertainment industries are still working hard to get people through the door. But, get to know your audience and the journey they’re on, then brands can create experiences that will make every penny of spend worthwhile.”
Owen Griffiths, Commercial Revenue Director, The Sun
“The latest IPA Bellwether report reveals positive indicators for the advertising landscape, despite ongoing budget cuts. There are clear areas of growth for brands and media owners alike to tap into.
“Great journalism remains at the core of everything we do but how we tell those stories is changing and that opens up a whole new swathe of opportunities.
“A cross-platform approach that incorporates video and visual storytelling will be essential for attracting and engaging diverse audiences and is a big growth area for us at The Sun.
“Simultaneously, advertisers should be maximising the wealth of first-party data that newsbrands uniquely hold.
“An example of this would be Nucleus, our proprietary 1PD platform that enables advertisers to understand their audiences better, plan by priority and offers real time measurement and optimisations.”
Anna Forbes, Regional VP, N. Europe, DoubleVerify
“The latest IPA Bellwether highlights that businesses are preparing to navigate potential challenges in Q4.
“With the first Labour Government budget approaching and global conflicts intensifying, brands are operating in a complex environment where the risk of misinformation and inflammatory content is on the rise.
“It’s therefore imperative that advertisers harness solutions that will help them navigate nuanced brand safety and suitability challenges while still driving performance.
“This is especially important in formats where investment is increasing, including video, as highlighted in the report. As money flows into these areas, bad actors inevitably follow, including those behind sophisticated ad fraud schemes.
“While AI is driving challenges, such as low-quality made-for-advertising sites and disinformation, it also provides solutions to counter these threats. That’s why it’s encouraging to see many companies in the IPA Bellwether already integrating generative AI into their strategies.
“AI is proving to be a powerful tool for analysing and optimising media, ultimately enhancing brand performance and driving business outcomes.”
Siggi Rakovic, CEO at Hunch
“The Q3 report underscores the marketing industry’s cautious response to challenging external circumstances, with budget growth stalling for the first time in 14 quarters due to uncertainties surrounding the UK’s Autumn Budget and other global geopolitical factors.
“However, the robust growth in video campaigns highlights a clear opportunity for marketers to capitalise on. Not surprisingly, more businesses are now using generative AI as a vital tool, a trend we are likely to continue seeing.
“Generative AI enables advertisers to automate workflows and launch faster, more personalised campaigns.
“This increased efficiency reduces costs and leads to quicker revenue uplifts, empowering brands to navigate the evolving landscape and thrive, even in uncertain times.”
Joseph Pamboris, co-Founder & Solutions Lead, Alligator Solutions
“In uncertain economic times, it should be a priority to focus on media wastage. With issues like fraud and poor-quality ad placements, brands have the opportunity to reset and eliminate media inefficiencies.
“This approach positions brands to capitalise on the future economic rebound with leaner, more effective media buying strategies.
“By cutting out the fat, focusing on high-impact channels like video, and centralising their tech and data platforms, brands can drive greater incremental ROI.
“This shift not only improves immediate performance but also sets the foundation for long-term growth when market conditions improve.”
Troy Townsend, Co-Founder & CEO, Zitcha
“While growth in overall marketing budgets has stalled, the same can’t be said for retail media. This format continues to prove itself—claiming increasing investment from advertisers responding to consumer demands for more seamless customer experiences.
“Retail media’s growth will only continue as more people realise its power, making it a solid investment option for advertisers seeking to not only increase ROI but also deliver on their customers’ needs.”
Jason Warner, Director, UK and EMEA, SBS
“It’s hardly surprising that marketing departments are being cautious right now. With a new government in place and a Budget round the corner, it’s clearly a case of wait and see.
“I think this quarter’s findings need to be contextualised by the changes we’re going through at a national level, but the noise from the new government around increased investment in the creative industries and digital sectors should be a positive for our industry.
“Looking ahead to the next report, I believe there will be more positive sentiments from the market.
“In the here and now, it’s key that marketers take the time to ensure they come through this period of stagnation in a strengthened position.
“Ensuring programmatic pathways are streamlined and optimised could make all the difference in this regard, and those who audit their tech stack to reduce wastage and remain agile will reap the benefits in the near future.”
Alex Pym, CEO International, Acxiom
“With the latest IPA Bellwether report showing an overall decrease in marketing spend ahead of the Budget, it’s crucial that brands adopt a strategic approach to how they allocate their resources.
“While the economic landscape remains challenging, there are still opportunities for companies to leverage their customer insights more effectively, helping maintain relevance and boost engagement with their key audiences.
“Even in difficult times, the demand for personalised, data-driven experiences stays high, with over half (51%) of consumers still expecting tailored interactions from the brands they engage with.
“Rather than cutting back entirely, businesses should streamline their marketing strategies and ensure that any investment in data intelligence and personalisation is laser-focused on delivering measurable results.
“Tough times call for smart marketing. Leveraging data to better understand customer behaviour can help brands weather the storm and set the foundation for future growth.”
Larraine Criss, COO, Preciso
‘The Bellwether report shows overall marketing budgets remaining flat, but even if budgets are not increasing, one way to get more for your money is to look at diversifying where you spend your ad dollars.
“Putting most of your budget into tried and trusted channels makes perfect sense, but it’s also sensible to set aside a test budget for new and emerging channels.
“This offers the potential to get in early and reap the rewards before most advertisers have discovered these new channels, and while rates are relatively low.”
Nigel Clarkson, CRO, Taptap Digital
“Q3 seems to be a temporary blip after 14 consecutive quarters of YOY growth for the advertising business.
“July and August are often soft months across EMEA, with the holiday season in full flow and clients moving money on either side of this window.
“The budget available for ‘main media’ (above the line) continues to grow, and ‘video’ continues to take an increasing share.
“I’m surprised that OOH is being marked down as digital. OOH sold very well across core formats in Q3, so it will be interesting to dig into more detail.
“There is no need to panic, though, as the sector has consistently grown since 2022 and is in great shape.”
Salvatore Internullo, Chief Growth Officer, MINT
“With marketing budgets tightening, it’s imperative that advertisers harness AI technologies to analyse investments on a cross-channel layer in order to recognise how each channel is performing, optimise spend and make the right media investments.
“It’s vital that marketers understand how to embrace automation to streamline operations and facilitate the highest levels of efficiency.”
“While the report highlights AI’s potential for agencies and brands, simply ensuring teams have comprehensive AI knowledge and skill sets isn’t enough.
“To get the best from AI, it’s necessary to have a robust data infrastructure and purpose-built workflows to break down internal barriers and ensure seamless collaboration.”
Eric Shih, COO, Cedara
“While this quarter’s Bellwether Report saw a -15.7% decrease in out-of-home (OOH) advertising, it’s important to remember that OOH remains one of the most sustainable mediums, accounting for less than 3.5% of the UK’s advertising carbon footprint and 3.3% of its total advertising power consumption.
“As we look ahead to 2025, marketers must prioritise sustainable practices. With the Corporate Sustainability Reporting Directive (CSRD) set to take effect, thousands of companies will soon be required to measure, report, and disclose their Scope 1-3 emissions.
“Now is the time for forward-thinking brands to embrace low impact, high-visibility channels such as OOH, to position themselves as leaders in sustainability.”
Elizabeth Brennan, GM Advertiser, Permutive
“With ongoing economic uncertainty and focus on the Autumn Budget, it is understandable that brands are being more cautious with their budgets in the short term.
“However, the projected lift in ad spend for 2025 suggests marketers remain optimistic about long-term growth opportunities.
“As brands become more cautious with their budgets, there’s an increased need to focus on long-term growth and ensure programmatic media spend is both efficient and goes on working media.
“Cookies no longer exist for 70% of the internet, and it is still unclear when Google will hand the remaining 30% of power to the consumer, and even so, they will still overwhelmingly choose to opt-out.
“This means that the number of consumers using cookies could decrease to 10%, possibly even 5%.
“Innovative brands are instead looking to publisher signals, first-party data collaboration and curation to solve this ongoing challenge.
“There is no need to wait for brand equity to entirely diminish, with our platform showing brands can see incredible results, including doubled sales and halved CPAs, exceeding all expectations on campaign metrics.”
Mateusz Rumiński, VP of Product, PrimeAudience
“The Q3 IPA Bellwether report has revealed that marketing budgets have decreased for the first time in many years.
“As brands are trying to become more efficient, the number of impressions they want to use to deliver this impact is constantly decreasing.
“This means campaigns must be as effective as possible. Video ads are an excellent example of this, as they are more expensive when measured per impression, yet effective in driving engagement and impact, which is likely why budgets for these are on the up.
“But what is the solution? As we approach 2025, marketers should utilise advanced AI technologies to ensure consumer experiences resonate, with enhanced creativity, improved campaign effectiveness and boosted ROI.
“Generative AI, in particular, has the ability to process vast amounts of data, allowing for more precise audience targeting, content creation, and campaign strategies.
“These capabilities will be instrumental in the future of advertising, and given how turbulent the upcoming months may be, now is the time for brands to get on board and rise above the competition.”
Hugh Stevens, UK Managing Director, LiveRamp
“While the latest IPA Bellwether report suggests that reduced spend in Q3 was a temporary measure in the face of the Autumn budget, marketers should be cautious about swiftly pulling back budgets, even in the short term.
“Experience has shown that brands who maintain marketing spend through precarious economic straits often rebound the quickest.
“In the same vein, they should also be conservative toward promotion activity, as consistently lowering prices can damage brand value and will therefore hamper businesses’ ability to scale revenue in the future.
“However, there are some signs that consumer confidence is buoyant. With easing inflation and an expected relief in the cost-of-living crisis highlighted across those vertical respondents in the report, including FMCG and Retail, marketers should focus on targeting their high-value audiences with the greatest propensity to spend.
“The key to this is first-party data, which provides rich insight into customer behaviour, including buying intent and interest.
“When combined with partner datasets through data collaboration, this unlocks a full 360 view of the customer’s purchasing journey across channels and platforms.
“Brands can use this oversight to optimise their media targeting and planning, improving outcomes and driving long-term business value.
“Now is the time to embrace data collaboration and ensure your brand is front and centre with customers.”
Phil Acton, Country Manager UK, Adform
“While the latest Bellwether report is more pessimistic than previous quarters, which is unsurprising given business hesitancy ahead of the Autumn budget, it is encouraging to see that video advertising remains a lightning rod for spend.
“With the category experiencing an impressive increase of +11.7%, the highest level since Q4 2022, advertisers should now capitalise on this momentum with meaningful investment in advanced omnichannel measurement tools.
“Cross-screen identity, attribution modelling, and viewability solutions can enhance control within video advertising, particularly in the Open Web and in fast-growing Connected TV (CTV) environments.
“By enabling greater transparency in reporting across channels, advertisers can use these insights for better media optimisation and sophisticated omnichannel planning.
“For example, by integrating key metrics such as geo, IP, and device ID through these solutions, advertisers can gain a clearer picture of who is viewing their ads.
“This can be further activated by serving up a scannable QR code within a CTV ad or combining it with digital-out-of-home campaigns (DOOH) deployed in specific postcodes for incremental reach.
“This strategic focus will ensure that brands can achieve game-changing results and stay at the forefront of the omnichannel revolution.”
Aleksandra Drozda, Head of Sales Dev & Efficiency, RTB House
“The Q3 2024 IPA Bellwether report signals the challenging landscape businesses are bracing themselves for.
“While marketing budgets have been reduced ahead of the Golden Quarter, there will be more emphasis on long-term brand building.
“In particular, AI – when leveraged correctly – and Deep Learning technology will ensure budgets work harder and smarter when driving performance.
“It’s encouraging to see IPA Bellwether participants already implementing Generative AI as part of their business strategy to enhance customer service and marketing strategies to drive sales and customer engagement.
“In doing so, they will be in good shape when marketing budgets bounce back.”
James Hill, Chief Commercial Officer, EXTE
“The downward trend in behaviour towards marketing budgets in the latest IPA Bellwether report is slightly concerning given we are gearing up for the golden quarter for retail.
“However, several macro and geo-political factors will throw caution to the wind for UK businesses, who will be looking to hold tight for what is yet to come.
“Despite this, I’m optimistic that budgets will increase once the US presidential election draws to a close and the new UK government has outlined its budget.
“Regardless of this apprehensive approach, with main media budgets experiencing the second consecutive quarter of budget increases, driven by big-ticket video campaigns, having strong creative should be front and centre for marketers.
“Now is not the time to rest on your laurels when it comes to attention-grabbing and relevant creative if we are to see budgets on an upward trajectory once again.”
Paul Wright, Head of Uber Advertising International
“Given geopolitical and macroeconomic events, among them the cautiously-anticipated Autumn budget and delays in cutting interest rates, it was likely that most marketers would dial back budgets in Q3 2024.
“Although the report describes this as a temporary blip in an otherwise strong period of growth, marketers will need to stay focused on weathering whatever comes next.
“With UK households in limbo, between optimism in the face of a slight ease in the cost of living crisis versus lingering uncertainty, brands will need to be strategic and deliver marketing experiences to those consumers most likely to spend.
“Luckily, there are tools to help it navigate this period, most notably, commerce media. With access to quality first-party data, providing insight into audience buying intent, interests, and the context of purchasing, commerce media can better connect brands with their consumers at the moments of greatest consideration.
“When this is paired with relevant environments and engaging creatives delivered at key moments in the customer journey, the result is better performance and better media.
“Marketers across verticals who choose to invest in these strategies will come out of this period with stronger customer relationships and can more readily scale long-term value.”
Ed Wale, VP, International, LG Ad Solutions
“It’s encouraging to see video’s growth, underscoring the medium’s undeniable influence on the industry.
In particular, the world of TV has experienced increased adoption of Connected TV (CTV) and free ad-supported streaming television (FAST), which has given marketers scalable, digitally enabled advertising opportunities.
“With the Smart TV home screen becoming a valuable entry point for engaging consumers, brands can now also connect with audiences directly where their viewing journey begins.
“As we look to 2025, video’s importance as a leading channel is set to rise, delivering huge potential for both brand-building and performance marketing.”
Michael Hanbury-Williams, Managing Director UK, Greenbids
“The downtick in marketing budgets is just the latest in a long list of challenges CMOs face in today’s complex media landscape; one where they’re expected to not only grow business, but balance this with external pressures and sustainability targets.
“While I’m very sympathetic of this struggle, I’m shocked to see that sustainability still isn’t a priority in the report findings – mentioned only by the manufacturing industry as a focus for the next 12 months.
“Yet advertising should, theoretically, be easier to decarbonise than other industries.
“What is encouraging, however, is the identification of AI as a long-term strategic opportunity. This sets the stage for marketers to lean more heavily on AI-driven tools to boost media quality and performance, while also cutting carbon emissions.
“By leveraging responsible forms of AI, companies can not only contribute to more sustainable marketing practices, but also drive better campaign outcomes – making the lives of CMOs just a little bit easier.”