The IPA Bellwether Report provides an indication of where the marketing sector is heading. Many professionals in the industry may have expected budgets to come down after an increase in Q1, with economic and geopolitical conditions continuing to test businesses not just in the UK, but across the globe, placing a real emphasis on revenue generation and cost savings.
However, the latest Bellwether Report shows that UK marketing budgets continued to increase, rising to their second highest level in two years in Q2. Rather than retreating in the face of economic headwinds, many businesses continue to prioritise marketing as a driver of growth, brand resilience and competitive advantage.
To provide our members and the wider marketing community with a summary of the report’s findings and its potential impact on the sector, we’ve broken down the report into eight key takeaways.
Eight key takeaways from the latest report
1. Total marketing budgets continue to rise
- Despite persistent market turbulence, UK businesses increased their marketing investment for a second consecutive quarter, revised up to the second-highest level in two years.
- A net balance of +6.9% of companies revised budgets upwards in Q2, and while slightly below Q1's +7.3%, the figures suggest that company executives view the marketing function as a growth driver.
2. Event budgets surge again
- Investment in events retained their position as the strongest-performing marketing discipline, with a net balance of +11.0%.
- Although growth eased slightly from Q1 (+14.7%), businesses continue to prioritise face-to-face engagement with their customers, recognising the value of building stronger relationships and creating memorable brand experiences in increasingly competitive markets.
3. PR and main media continue to grow
- Budgets for both PR and main media advertising remained in positive territory, with net balances of +1.4% and +1.5% respectively.
- Growth has slowed from Q1 (+4.5% for PR and +6.0% for main media), but there is continued emphasis on brand building, increasing visibility and feeding the top of the funnel.
4. A positive quarter for video budgets
- Video was the standout performer within the main media category, reaching its strongest position in seven quarters with a net balance of +8.2%, up from +5.7% in Q1.
- This underlines strong demand for quick and long-form video content that can attract and hold audience attention, helping brands stand out in the noise of the market.
5. Published brands experience downturn
- Published brands remained the weakest-performing main media category, with budgets contracting for another quarter. The net balance of -8.3% is relatively unchanged from -8.5% in Q1.
6. Mixed news for market research budgets
- Market research budgets continued to decline, marking a sixth consecutive quarter of cuts. However, the pace of decline slowed considerably, improving from -8.5% in Q1 to -4.1% in Q2.
7. Business confidence drops
- After recovering at the beginning of the year (+0.6% in Q1), confidence in companies' own financial prospects fell back into negative territory.
- The net balance declined to -9.6%, amid concerns around inflation, energy costs, poorer economic growth and geopolitical instability.
8. Industry confidence takes a dip
- Confidence in the wider marketing industry also deteriorated during Q2. The net balance fell from -21.0% to -25.1%, a disappointing decline following a five-quarter high in Q1.
CIM's take on the report findings
CIM Chief Executive Chris Daly spoke to the media last week (e.g. Performance Marketing World, New Digital Age, Prolific North), discussing what the results mean and why marketing capability remains key:
“The latest IPA Bellwether Report offers an encouraging signal for the marketing profession. Despite ongoing economic uncertainty, UK organisations increased marketing budgets for the second consecutive quarter, reaching the second-highest level recorded in the past two years. At face value, this reflects growing confidence in marketing's ability to drive business performance. But, perhaps the more interesting question we should be asking is, are they investing more strategically, or simply spending more?
“Strong increases were seen in events (+11.0%) and direct marketing (+3.0%), highlighting a continued focus on creating meaningful customer connections and delivering measurable results. Yet the sustained growth in PR (+1.4%) and main media advertising (+1.5%) is equally significant. In a business environment increasingly under pressure to deliver short-term returns, these figures suggest many organisations still recognise the value of brand building, reputation and trust.
“The challenge for marketers is that growth rarely comes from choosing between brand and performance. The evidence consistently points to organisations that do both. So, while it's positive to see budgets increasing, leaders should ask themselves whether investment is being distributed in a way that supports both immediate commercial objectives and long-term brand building.
“There is another important consideration. As marketing investment grows, will organisations invest with the same confidence in the people responsible for delivering results? Technology, automation and AI are reshaping how marketing is executed, but they do not replace strategic thinking, creativity or commercial judgement. If budgets are rising but capability development remains static, businesses risk underutilising the very investments they are making.
“Ultimately, the Bellwether findings present a reason for optimism, but they also serve as a reminder. Sustainable growth depends on more than increased spend. It requires organisations to take a joined-up approach, balancing short-term performance with long-term brand building, while ensuring their people have the skills and confidence needed to maximise every pound invested.”
Looking ahead
The Q2 2026 IPA Bellwether Report presents encouraging signs for the marketing sector. Even with economic pressures continuing to cause concern for businesses, many C-suite executives are opting to keep their faith in the marketing function, knowing its role isn't just to drive short-term revenue, but also to build longer-term brand equity.
There may be a temptation for businesses to purely focus on short-term revenue generation to aid cash flow issues and protect themselves against future events that could see them endure an economic downturn. However, the focus on the bigger picture remains crucial. Once the economic picture improves, the best-placed organisations will be the ones that kept some of their focus on brand building.
Marketing leaders and company executives are continuing to work hard to allocate this budget sensibly, investing in their performance marketing teams to try and gain a competitive edge, whilst continuing to provide PR teams with the resources required to stimulate growth in the longer term.
The rise in event budgets is also heartening to see. Those who staged events will have spoken to their customers about their expectations - and provided themselves with the best possible chance of acquiring new customers in the process.
However, it will be interesting to see whether budgets continue to increase in the next two quarters, especially as financial confidence in companies and the industry dip.
To maximise the chances of revenue growth, organisations should be looking to ensure their teams are fully equipped with the skills required to make the most of technologies like Artificial Intelligence, enabling them to work on higher-value tasks, make better-informed decisions and deliver greater value from every marketing pound invested.
This is where marketing capability, both at an individual and organisational level, is crucial.
For more information: https://ipa.co.uk/news/bellwether-report-q2-2026/
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