We explore the findings of the latest IPA Bellwether Report, bringing together insights from industry experts.

UK marketing budgets closed 2025 on a disappointing note, reflecting heightened caution among businesses amid economic and political uncertainty. According to the latest IPA Bellwether Report, total marketing spend recorded a net balance of 0.0% in Q4, down from +3.6% in Q3, marking a pause after two consecutive quarters of modest growth.

With almost six in ten surveyed companies (57.4%) leaving budgets unchanged, the remaining panellists were evenly split between those increasing spend and those implementing cuts, signalling a clear preference for financial prudence as firms navigated volatile market conditions.

While overall spend stagnated, certain categories continued to attract investment. PR budgets rose to a net balance of +3.5% up from +2.5% in Q4, and events remained positive at +1.4%, though down dramatically from Q3’s +10.9% highs. 

In contrast, main media advertising and sales promotions recorded no overall change, but the underlying picture was far from uniform. Out-of-home advertising posted the steepest decline (-17.6%), followed by audio (-10.2%), published brands (-6.5%), and video (-5.0%).

CTV and Smart TV Home Screens Drive Video Growth Despite Q4 Spend Dip

"While the IPA Bellwether shows video ad spend declined in Q4, video overall grew in 2025, representing one of the largest shares of UK digital ad investment, with digital video accounting for nearly a quarter of spend, making up more than a third of that share. UK video sales also rose by around 8 % year-on-year, with streaming subscriptions driving much of this growth, demonstrating strong consumer demand for video formats supported by CTV and Smart TV screens.

As audiences increasingly shift to the big screen, the Smart TV Home Screen is emerging as a high-impact video discovery environment and a critical first touchpoint in the viewing journey. For advertisers, the Home Screen provides access to brand-safe, high-attention video at the very moment viewers decide what to watch. By leveraging first-party data, AI-driven insights, and clean-room collaborations, marketers can reach the right households with relevant messaging, optimise campaigns in real time, and better measure performance.

As video investment continues to shift toward CTV, the Smart TV Home Screen is set to play an increasingly central role in driving measurable, impactful outcomes for both brands and audiences alike.”

Helen Keelan, Head of Sales, General Market Europe, LG Ad Solutions

Turning market challenges into marketing advantage

“Market behaviour in Q4 2025 showed a noticeable shift: B2B brands remained cautious around large, net-new decisions, while organisations with established and proven strategies showed a readiness to invest once more, with confidence building where momentum already exists.  

“With this renewed optimism set to carry into 2026, B2B brand marketers must  

turn market complexity into advantage, particularly in growth verticals such as Industry 4.0, SaaS, Automotive and Connectivity. There’s a significant opportunity to leverage AI to unlock hyper-personalisation and spot unmet or emerging customer needs at scale. Marketing must play a role in simplifying market complexities, being present earlier in the sales journey to give buyers something helpful that is right for them. The brands that are relentless in the pursuit of both short-term growth and long-term trust will not just keep up, they’ll lead.” 

Elie Kauffmann, head of sales for EMEA, Audion

Why Trust Is the Real Growth Lever

“The latest IPA Bellwether shows cautious marketing spend in Q4 2025. However, this offers marketers a chance to refocus on what delivers the greatest value. In times like these, trust becomes paramount. 

Political uncertainty, fragile public services, continuing cost of living challenges, paired with the rise of AI and AI-generated content has left the public wary, working out who and what to trust. And yet trust is one of the biggest drivers of brand consideration: 74% of consumers are willing to spend more with a brand that they trust. Marketers have the power to shape this across both public and private sectors. 

We cannot underestimate the power of trust in consumer behaviour and commercial growth, and I hope to see marketers harnessing trust in the coming year to prove their impact. Media choices are critical to this. When 42% of consumers’ trust in an organisation is shaped by the medium they are contacted through, highly-trusted and personal channels reinforce campaigns in the short and long term. As champions of direct mail, the single most trusted channel, we understand how consumer faith in a brand strengthens relationships and improves campaign overall impact, even in periods of uncertainty.”

Phil Ricketts, Commercial Director, Marketreach

Advertising Is Not a Tap to Be Turned On and Off

"The latest Bellwether report reflects what many across the advertising industry experienced in Q4 - a tough domestic market combined with wider global uncertainty made it a challenging period.

These are complex times, but it’s important to be rational and remember that this is a resilient, innovative and creative industry.

Advertising isn’t something to be switched on and off depending on how much money is in the pot; it is a vital and ongoing element of any long-term business strategy. Experience consistently shows that organisations that continue to invest in marketing and brand-building, even when trading conditions are difficult, are better able to deliver sustained and consistent growth.

Omnichannel advertising (reinforced with robust and innovative technology platforms) plays a key role here as enterprises look to hone the channels, targeting, creatives and measurement that enable them to deliver ROI as well as continue to build their brands for the future.”

Dean Nagib , UK country manager at Azerion

Building Sustainable Growth Through Smarter Programmatic Investment

“The Bellwether findings show a market that’s being careful, but not standing still. While overall budgets held flat at the end of 2025, advertisers are clearly reallocating spend towards channels that offer flexibility, accountability and measurable outcomes. The continued shift into digital and online formats reflects a pragmatic response to uncertainty, rather than a lack of confidence in advertising’s role in driving growth.

“What’s encouraging is that brands aren’t pulling back altogether — they’re becoming more intentional. As pressure on ROI increases, 2026 will reward marketers and agencies that simplify operations, reduce friction and make better use of data and automation to work smarter with every pound spent. Those who remain invested and focused on efficiency as well as effectiveness will be best placed to unlock long-term value as confidence begins to return.

“As brands explore new approaches to programmatic advertising, the focus will be on balancing innovation and responsibility. Ensuring premium environments, trusted supply paths, and demonstrable outcomes is now a clear focus. We’re already seeing brands and agencies invest and test more advanced, sophisticated ways of working that balance performance with trust and transparency, laying foundations for sustainable long-term growth.”

Joseph Worswick, VP, Buyer Development EMEA/APAC, OpenX

Why Measurable Brand Impact Matters More Than Ever

“Even as total marketing budgets hold steady, the findings from the latest report are a clear sign that marketers are being asked to do more with the same, and to justify every pound against the results it yields. Brand-building remains essential to long-term growth, but in this climate it also has to deliver visible, measurable returns.

“This is where commerce-enabled creative formats are gaining traction. In a landscape where main media budgets are flat and categories like video are now seeing cuts, but online advertising is one of the few areas to report robust growth, formats that link storytelling directly to buying opportunities are naturally rising up the priority ladder because they combine emotional impact with clear performance data.

“With marketers forecasting only modest overall adspend growth of 1.5% in 2026, the window of opportunity is limited but clear. Brands that make their storytelling shoppable, particularly in fast-growing online environments, will be best placed to turn hard‑won attention into action and incremental revenue.”

Sarah Lawson Johnston, Managing Director, EMEA

Marketing Budgets Hold Firm Amid Uncertainty, but ROI Focus Must Not Eclipse the Wider Mix

“There was always going to be a bit of wobble in Q4 given the uncertainty surrounding the Autumn Budget alongside global pressures, but there is another headline to take away from this IPA Bellwether report: marketing budgets have largely held the line. This resilience is important and shows that brands

have learned the lesson that cutting spend in a downturn does not protect business health. Meanwhile, the 13.2% increase in ‘other online’ budgets shows that brands aren’t retreating, but prioritising investment in channels where they can prove ROI.

“However, that demand for accountability shouldn't mean ignoring the wider mix. We must challenge the outdated idea that channels like audio, out-of-home, and video are hard to measure. These formats have become performance drivers in their own right, closing the gap between awareness and conversion. Brands that connect the dots by leveraging AI-enabled identity solutions across all these channels won’t just weather the wobble, but drive game-changing engagement all year round.”

Phil Acton, UK Country Manager, Adform

AI and Hyper-Relevance

“While the latest IPA Bellwether suggests caution, the +13.2% rise in ‘other online’ budgets is grounds for optimism, and shows exactly where the battle for return on investment will be fought. AI has fundamentally shifted the display landscape, and the IPA’s respondents' emphasis on ‘AI readiness’ is timely, but it must go beyond simple operational efficiency.

This next phase of automated, digital advertising is defined by a simple truth: relevance equals results. It’s

not enough to just buy media faster; brands must use AI to seamlessly blend creative and media placement - anything less is just noise. 

“As economic pressures ease, the brands that leverage AI as a tool for hyper-relevance, rather than just blunt speed, will be the ones that turn cautious budgets into sustainable, measurable growth.”

Shane Smith, VP of Relevance, RAAS LAB