The IPA Bellwether Q4 2024 survey revealed that marketing budgets returned to growth in the last quarter of 2024.
But caution remained the watchword as we head into a new year, with new challenges ahead.
We gathered expert insights on the latest Bellwether report from a broad spectrum of leaders in the media, marketing and advertising sectors…
Larraine Criss, Chief Operating Officer, Preciso
“The Q4 2024 Bellwether Report highlights an intriguing balance between cautious optimism and strategic adaptation within the UK marketing landscape.
“I really find it interesting to see the UK’s divergence in spending priorities, with a strong growth in direct marketing and face-to-face events, in contrast to a decline in main media advertising.
“In general, the report shows promising business growth for the digital advertising industry, with a strong indication of an ongoing shift towards shorter-term, measurable returns.
“These findings emphasise the importance of agility in budget allocation, while keeping a strategic eye on long-term brand growth opportunities.”
Michael Hanbury-Williams, UK MD, Greenbids
“As wildfires blaze in the US, and 2024 saw temperature records broken around the world, it seems our industry has conveniently forgotten about the climate emergency.
“You certainly wouldn’t know we’re in one looking at the IPA Bellwether Report which, once again, fails to mention sustainability in the findings.
“Alongside the analysis of advertising budgets, we should also be accounting for emissions in these types of reports.
“This is because, without seeing and acknowledging the climate impact of our digital actions, we are clueless about the true cost of advertising campaigns.
“When the market stirs from this current period of caution, it must seize the opportunity to decouple growth from waste.
“Look to the brands and agencies that are leading the charge with campaigns that are not only low carbon, but more efficient and effective in delivering KPIs.”
Andrew Mole, CEO & Co-Founder, pubX
“While the Q4 report suggests the industry took a cautious approach to spending towards the end of last year, the main takeaway is that marketers are broadly optimistic about 2025.
“For example, while main media marketing budgets suffered in Q4, +6.3% of panellists expect them to rise in 2025-26. This is great, as it runs contra the bubbling narrative of a stagnant year, which has a risk of becoming self-fulfilling if unchecked.
“Unsurprisingly, AI and GenAI are highlighted as growth areas, with marketers seeing their benefits for personalisation and training.
“It’s important to embrace this technology, which, if harnessed in the right way, can make advertising more efficient throughout the supply chain.
“But we also need a clear roadmap and opportunities for re-training for those whose jobs are impacted as a result.”
Daniel Todaro, CEO, Gekko Group
“With brands and businesses feeling the pinch of the current economic climate and increased overheads which can only be passed on to customers, there is certainly some trepidation among many as the new year begins.
“Although, it’s positive to see the increases in marketing budgets as brands hone in on their strategies to boost sales and ROI, in an increasingly competitive landscape, consumers have more choice and shallower pockets, meaning marketing needs to work both harder and smarter.
“In terms of productivity and process, AI advancements will continue to be a dominating factor in decisions made across every business, particularly for marketers.
“The latest report findings demonstrate how the appetite among many has peaked, and that integrating AI technologies into 2025 go to market strategies will enable a fresh perspective for many to heighten that all important ROI metric.”
Jason Warner, Managing Director, UK & EMEA, SBS
“2024 has been a year of adaptation, shaped by global political shifts and economic pressures, such as rising employer costs in the UK.
“These challenges highlight the necessity of creative thinking, strategic flexibility, and the smart application of data-driven insights to maximise campaign effectiveness.
“In 2025, clients and agencies will have a clear opportunity to forge stronger collaborations, drive innovation, and sustain resilience in an evolving digital landscape.”
Tom Stone, co-Founder, re:act
“The Q4 IPA Bellwether Report reinforces what many of us in the industry are already experiencing: social media is gaining ground as brands rethink their ad spend.
“While main media budgets have dipped, the 2.2% growth in “other online advertising” suggests a potential steady rise in social media investment.
“This shift makes sense. Social platforms deliver highly targeted campaigns with measurable results, enabling brands to maximise their budgets without compromising on impact.
“The growing appetite for flexible, agile advertising mirrors the evolving needs of both businesses and consumers in today’s economic climate.
What stands out most is the optimism for 2024.
“As clients seek to future-proof their marketing strategies, social media’s adaptability and efficiency will play a central role in driving results. The takeaway? Social isn’t just a channel, it’s the backbone of a modern, connected marketing approach.”
Alex Stil, Chief Commercial Officer, Verve
“The fact that many advertisers are pulling back from traditional media advertising reflects the consumer’s expectation for more personalised approaches from brands.
“To deliver this advertisers must invest in solutions and channels that continue to drive results without the use of third-party cookies.
“There is a growing need for ID-less contextual solutions that respect consumer privacy while still allowing for effective targeting and increased engagement.
“The focus of digital advertising must shift if it is to thrive in the year ahead.”
Siggi Rakovich, CEO and Founder, Hunch
“The latest IPA Bellwether Report marks a pivotal moment for agencies and marketers alike.
“As marketing budgets return to growth, albeit cautiously, the report underscores the transformative potential of artificial intelligence.
“AI is no longer just a tool for efficiency—it’s a catalyst for innovation in pricing models, services, and how agencies justify their value.
“As in-house teams increasingly leverage AI for efficiency, freeing up their time to move beyond operational tasks and focus on strategic priorities, the pressure on agencies to demonstrate agility and measurable outcomes has never been higher.
“Traditional pricing models, rooted in rigidity, must evolve into performance-based structures that reward results.
“This shift isn’t about keeping up; it’s about redefining the agency-client partnership.
“Agencies that embrace AI-driven capabilities and train their teams to adapt will not only retain relevance but lead the industry in setting new benchmarks for creativity, efficiency, and measurable impact.”
Wander Bruijel, Chief Strategy Officer, Born Ugly
“Something that stands out from the IPA Bellwether Report is how businesses seem to be missing the opportunity to make the most of long-term marketing strategies.
“The focus on short-term results suggests they’re taking a more functional approach to marketing rather than putting the consumer at the heart of it.
“This means they aren’t creating the distinctive, engaging campaigns that resonate and stick with people.
“It’s not just about spending more, it’s about spending smarter. Long-term marketing should be about building something memorable and meaningful, but it feels like that’s being pushed aside, and that’s a shame because it’s such a powerful growth driver.”
Fiona Salmon, Managing Director, Mantis
“It’s promising to see cautious growth in marketing budgets in the latest IPA Bellwether Report, with 2025 budgets showing optimism.
“It’s also interesting to see the report highlighting the transformative potential of AI, which already has, and will continue, to shape the industry’s trajectory.
“However, brands must take the most holistic approach to innovating in order to maximise marketing budgets amidst rising labour costs, intensifying competition, and the unpredictability of platforms like Meta and Musk’s ventures.
“To sustain a thriving advertising ecosystem for all players, marketers must embrace a “suitability era”, by adopting smart tools that align brands with appropriate, high-quality content. Only through positive disruption, will we foster long term resilience.”
Chris Hogg, Chief Revenue Officer, Lotame
“If Q4 was softer than expected, then it was a problem of inflated expectations.
2024 was a year with both the Olympics and the Euros — which would have swallowed the lion’s share of big brand media budgets — against the backdrop of wars, climate disasters, and divisive elections which made other media channels less “safe”.
“Plus, after years of inflation, agencies knew consumers were too exhausted to be whipped into the usual holiday shopping frenzy.
“Advertisers are also having to wrestle with digital fatigue — perhaps a long hangover from the pandemic years — which is causing many consumers to disconnect from channels that are often the backbone of modern marketing.
“It’s no surprise to see event budgets soar, as they offer the chance to get in front of consumers and create real, tangible connections free from the noise of the web.
“In this context, it’s a sign of the tremendous strength of the UK advertising industry that Q4 returned growth at all.”
Adam Stanley, Managing Director, Event Concept
“It’s encouraging to see the market continuing to recognise the power of events as one of the fastest-growing channels in the marketing mix.
“However, this increased investment comes with heightened expectations and the pressure to squeeze as much value as possible from every penny spent.
“To achieve this, brands need to work with an end-to-end creative event partner who can streamline the entire process—from initial concept to final evaluation.
“By consolidating multiple roles into one trusted partner, brands eliminate inefficiencies, reduce costs, and ensure a cohesive, seamless experience. Ultimately, clients are seeking ROI on their event investments, with impact extending beyond the immediate moment.
“A business that can establish key metrics upfront, integrate them into experience design, and measure them effectively is invaluable in today’s market.
Leonard Newnham, Chief Data Scientist, LoopMe
“The timing of the UK’s AI Action Plan and the latest IPA Bellwether Report highlights the critical role that AI will play across the UK economy in 2025.
“While the Action Plan commits £14 billion and establishes new growth zones, the latest IPA report reveals that AI has already become a vital tool for UK marketers, particularly in driving hyper-personalisation across campaign execution and direct marketing, which has seen a rise in investment because of this.
“For this momentum to continue, it is vital that the Government follows through on its pledge to attract and retain top AI talent.
“As businesses face rising labour costs, simplifying the processes for student and work visas is essential to achieving this goal.
“The Government must also ensure it delivers on its promise to balance regulatory oversight with a supportive environment for innovation, providing genuine support for startups and research-led spinouts.”
Lawrence Horne, UK Country Manager, Ogury
“We are in the midst of the period where AI must deliver on its hype to drive measurable business outcomes.
“The latest Bellwether report gives us early signs of how the technology can supercharge digital advertising.
“It’s no coincidence that we see comments on AI’s ability to improve personalisation alongside a surge in budgets planned for direct marketing — the method which benefits most from personalisation.
“However, as the industry leans more on AI to connect with consumers, we must exercise even greater caution around the quality of the data we collect and utilise, whilst also being sensitive to public and regulatory trends in data privacy.
“Moving forward, a significant challenge for advertising professionals will be harnessing the power of AI while ensuring data confidentiality and at the same time adhering to privacy regulations. “
Will Davis, Chief Data Officer, Medialab
“Advertising continues to operate against a backdrop of unpredictability, with high costs and political changes driving uncertainty.
“However, expectations for industry fortunes and economic expansion are cautiously optimistic – as proven by the return to growth for UK marketing budgets.
“Even so, it remains essential for businesses to prove the effectiveness of media investments, particularly as budgets come under greater scrutiny.
“The report identifies the surge in technological advancements, particularly in AI – an area identified in the report as being a driver of investment in direct marketing and a way to offer new services and pricing models to clients.
“But AI also creates a double-edged sword for business owners: the tech offers unprecedented opportunities, but those who don’t adapt risk falling behind.
“The key to staying relevant and thriving over the long term is to cultivate a culture of continuous learning. AI is not a one-off skill; it evolves, so training should too.
“Investing in a base level of AI literacy now will allow businesses and employees to more quickly embrace future AI initiatives as they come to market.
“As budgets increase and priorities shift, businesses must ensure their workers are equipped with the tools needed to use AI constructively, enabling you to leverage the tech effectively and ensure every pound spent drives measurable results.”
Sarah Lawson Johnston, Managing Director, EMEA, Vudoo
“In a landscape where UK marketing budgets are cautiously rallying post-budget, the emphasis on brand building and forging enduring consumer relationships is more pertinent than ever.
“As marketers, the challenge is not only to navigate immediate uncertainties but also to set the stage for robust long-term growth. This is achieved through a balanced investment in innovative strategies that elevate the entire customer journey.
“The sharp increase in event budgets signals a clear demand for meaningful, face-to-face consumer engagement, demonstrating that while digital continues to reign, the human element remains crucial.
“As we look towards 2025, the opportunity lies in integrating technologies that not only drive immediate results but also bolster brand essence over time.
“This heralds a new era of commerce media solutions that transform typical interactions into memorable experiences, enabling conversions to facilitate immediate business ROI.”
Jonathan Haines, MD, UK & Northern Europe, Equativ
“After a brief pause, tentative optimism is back. Heartened by modest yet positive budget gains last year, marketers and analysts are cautiously hopeful that 2025 will bring better prospects.
“But even as spending and innovation opportunities begin to open up, efficiency will remain crucial.
“As illustrated by the standout performance of direct marketing in Q4, economic volatility is leading many brands to focus on channels they can tightly control.
“Following the encouraging concurrent growth of online advertising, this means we are likely to see an ongoing shift towards programmatic platforms that offer media buyers both scale and the ability to create highly curated inventory selections according to unique goals.
“Or in simple terms, persistent uncertainty will make precision trading a continual key focus.”
Matt Buckle, Partner/Managing Director, Transmission
“The slight increase in overall marketing budgets could signal the first signs of industry growth in 2025.
“With more investment going towards market research, direct marketing and events, it’s clear that client spend is moving towards more short-term results driven campaigns.
“And the shrink in the “main media” budgets could suggest that broad-brush campaigns just aren’t cutting it anymore.
“As budgets continue to be constrained and subject to potential tariff increases, it makes sense to focus on getting results for your advertising pennies.
“To me, this is a great indicator of sustainable, long-term growth as advertisers focus on what really works and shift their budgets accordingly.”
Emma Thompson, Head of Agency, Golley Slater
“The slight rise in sales promotions is no surprise. With grocery retailers allowing more freedom for point-of-sale activations, brands are leveraging price drops and added value to capture attention.
“This added value is crucial as brands combat the competitive NPD surge in their categories. However, the limited optimism for 2025/26 signals that retailers remain cautious.
“It’s a sensible move – promotions are effective, but they’re only a short-term play. The real challenge is converting these into lasting consumer loyalty.
“The events sector tells a far more exciting story. Consistent growth since 2022, with a strong +15.5% forecast for 2025/26, highlights a clear appetite for experiential marketing.
“People have been craving real-world connections, and events, sampling, and testing deliver that in spades. This is where the magic happens – bringing products to life and building trust.”
Matthew Newcomb, Regl Director, N. America, UK, APAC, Azerion
“UK marketing budgets returning to growth is a welcome headline. However, digging deeper, the overall picture is still generally gloomy, with October’s budget and the market response to it still shaking out playing a part in this lack of optimism.
“This contrasts with the upbeat economic outlook in the US, where the understandable mix of expectations around how the new administration will operate is balanced by companies delivering healthy financial performances in 2024.
“Looking ahead, agencies will continue to streamline their operations, and we’d expect to see them opt to work with fewer, bigger partners; the winners in 2025 will therefore be scaled businesses with their own data and technology (making it a tough time to be an ad business in the UK with revenues of less than £10 million).
“CTV is another positive story and will show plenty of growth in the coming year and beyond, particularly as its key role in omni-channel campaigns is increasingly measured and proven.
“And last year’s return of M&A activity to the adtech arena will present some interesting and exciting opportunities in 2025…”
Paul Samuels, Executive Vice-President, AEG Global Partnerships
“While it’s great to see events emerging as the top-performer in the final quarter of last year, it’s no surprise. The IPA Bellwether report has shown increased investment in events during every quarter in 2024.
“Brands remain keen to connect with consumers directly and the way to do this is through live events, where they can create lasting connections by enhancing these experiences.
“Live event sponsorship has been much more than just logo placements and badging for many years. They offer a multitude of opportunities for meaningful and proven consumer interaction before, during and after the experience, powered by the inclusion of other digital marketing elements to drive and measure integrated campaigns.
“At the same time, the live music and event space continues to grow. As well as launching two new venues this year, we have added two new UK festivals to our world-famous roster alone, which sit aside our existing global festivals, tours, and world-leading venues.
“The breadth of artists and entertainment offers opportunities for ALL brands to engage, and by being part of that moment or, better still, enhancing it, allows them to build a real connection with fans that traditional media could only dream of.”
Jon Hewson, Managing Director, Audience Store
“Whilst the IPA Bellwether report suggests some business may still adopt a cautious approach towards main media marketing budgets in 2025, +6.3% of panellists expect to spend more in this area.
“At Audience Store, we anticipate that being higher, potentially double-digit, as innovative businesses will recognise and take advantage of the opportunity that more challenging trading conditions present – to gain market share by taking it away from the businesses who decide to reduce budgets.
“Those who press the pedal harder will benefit from increased share of mind, which will help them grow sales and protect market share and revenues.
“We also believe Connected TV (CTV) growth potential exemplifies this optimism as it continues to mature into a core advertising channel capable of delivering significant scale and measurable results for Advertisers.
“With its ability to reach highly engaged audiences during ‘binge-watch’ sessions and through premium content, CTV bridges the gap between traditional TV’s reach and digital’s precision.
“By integrating innovations such as QR codes, interactive ad formats, shopable ad units and advanced measurement tools, advertisers can now directly link the main screen to digital outcomes, enhancing accountability and performance.
“For brands, CTV is no longer an experimental channel – it is a must-have. It allows Advertisers to capitalise on evolving viewer habits and delivers both reach and performance.
“As direct marketing’s growth demonstrates, the synergy of technology, creativity, and accountability can unlock immense value in a challenging economic environment.”