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

Audio’s Resilience in a Flatlining Market

"Ongoing global volatility and subdued confidence at home have created a challenging environment in which to operate. Understandably this has influenced marketing investment decisions; the latest ‘flatline’ Bellwether figures are sobering, but not hugely surprising.

However, the reported decline in audio does not reflect our experience at Audion; 2025 was a strong year for the business - including in the UK - as more advertisers turned to digital audio to engage with consumers and deliver effective campaigns. Once viewed primarily as a brand-building channel, audio is now firmly established as a full-funnel, performance-driven lever.

Moreover, now the UK restrictions around advertising less healthy food (LHF) are fully enforceable, there is a clear opportunity for audio, one of the few channels that remains unaffected by the legislation. Digital audio offers a workable and competent solution at any time, but as brands face pressure to show ROI while navigating regulatory and economic headwinds, it could be exactly the salve that is required.

Looking at the wider picture, in quieter and more uncertain markets, sustained investment matters. Advertisers that continue to show up are better able to build long-term value and market share. This is where audio, with its capacity to combine emotional impact with precision and scale, continues to prove its resilience"

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

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

Cautious B2B Brands Double Down on Proven Plays as AI Becomes Key to Navigating Market Complexity

“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 continue investment in areas where momentum already exists.

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.”

Rachel Lofthouse, Managing Director UK & Europe, Fox Agency 

Marketers Turn to Smarter Data to Drive Confident ROI

“With economic pressures building and budgets under scrutiny, there’s a growing need for marketers to

justify every pound through better decision-making, and not just broader reach. That’s why high-quality third-party data is coming back into focus as it helps brands fill the gaps first-party data can’t, especially

when they’re looking to scale or reach new audiences. Super Signal Aggregators are taking this a step further by connecting demographic, transactional and contextual signals in one place. By bringing these trusted data sources together, SSAs give marketers a clearer view of not just where audiences are, but why they’re there. These connected insights help train smarter AI algorithms, support cross-channel activation and bring greater confidence to planning, optimisation and ROI.”

Sarah Robertson, Chief Product Officer, Experian Marketing Services

Resilient Digital Budgets Shift Toward Partners That Can Prove Impact

“Global macroeconomic uncertainty is set to continue in 2026; however, this latest data once again highlights the resilience of online advertising. Digital continues to deliver the performance and results marketers need in challenging times, and budgets will increasingly shift toward partners that provide clarity, measurable outcomes, and creative impact.

‘With improved tools and more advanced sell-side decisioning, ad tech partners can be more focused than ever on supporting publishers, particularly as GenAI continues to negatively impact general inventory. In this environment, ad budget decisions must be smart and grounded in technology and data that clearly demonstrate how placement, context, and engagement influence performance. By incorporating conversion data into sell-side decisioning, investments will also be more effectively aligned with final outcomes.”

Emma Lacey, SVP, Sales Demand EMEA, Onetag

Why Brand Lift Measurement Is Becoming Central to Smarter Media Investment

“With budgets at a premium, brands will be looking even more closely at ROI, and how their campaigns can be effective across the marketing funnel. When every pound needs to work harder, businesses require robust evidence of what’s driving results, where campaigns are having the greatest impact, and how investment can be allocated more effectively.

Advanced and trusted brand lift measurement is key to understanding how campaigns drive awareness, consideration, and ultimately, growth. When brand outcomes are measured properly, the value goes beyond a single campaign: it creates a foundation for smarter media optimisation and stronger long-term campaign performance. This is essential in a fragmented, ever-changing media landscape during uncertain economic times.” 

Sarah Robson, Global Head of Advertising Effectiveness, On Device

Unstable Signals Threaten ROI as Marketers Struggle to Make Every Pound Count

“With marketing budgets flat, or declining in some categories, every ad dollar must work harder. Marketers are well aware of this reality, but it's essential not to lose sight of the basics: consistent audience identification remains a top priority, because knowing who you’re reaching makes the difference between spending that delivers value or inefficiency.

“To invest with confidence in a constrained budget environment, marketers need a foundation that can withstand ongoing signal volatility. When audience matching and campaign targeting rely on unstable signals, spend is inevitably wasted. Stable identifiers can help marketers curb this waste by ensuring more efficient targeting, offsetting budget constraints.”

Charlie Johnson, VP, International at Digital Envoy

Digital Display Growth Signals Opportunity for Publishers

“Despite overall neutral budgets, online advertising showed positive growth, and with a recent AOP report also indicating an increase in digital display advertising, there should still be optimism for

publishers. The prevalence of consumers using AI search results has posed a challenge, but evolving tech and formats are already encouraging deeper engagement with audiences.”

Ben Pheloung, General Manager, Mantis