The Q3 2024 IPA Bellwether Report found that overall UK marketing budgets failed to grow for the first time in 14 quarters. However, there were some strong growing categories within this, such as PR (+11%), events (+9.9%), and direct marketing (+9.7%).
Here’s what industry experts have to say about the latest report’s findings.
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.”
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 Development and 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.”
Anna Forbes, Regional Vice President, Northern 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.”
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.”
Justin Reid, Senior Director of 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.”
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.”
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.”
Jim Rudall, Head of EMEA, Intuit Mailchimp
“Responsible investment and the return on that investment is always critical. And in the current climate, ROI holds even greater importance, as shown by IPA Bellwether’s report revealing UK companies are putting some marketing spend on ice amid uncertainty ahead of the Autumn Budget. With every penny needing to deliver results, marketers should focus on strategies that will help them stand out and drive deeper connections. Consumers are overwhelmed by content, which can make it harder than ever to break through. Personalisation is paramount. In fact, data from our brand trust report reveals that in this era of information overload, nearly half (48%) of consumers expect the right products and services to come to them. To truly connect, marketers must harness AI to deliver personalised experiences at scale, ensuring every investment can make a meaningful impact. Those who do will march ahead of those who are holding back.”
Lucy Bristowe, CEO, UK & Western Europe, Kantar Media
“It’s been a year of cautious optimism for consumer sentiment and these figures put the emphasis back on ‘caution’ for UK marketers as we come to the end of 2024. Advertisers might not be slashing budgets, but they are holding tight for more certainty – and that’s no surprise with the Autumn Statement and a US election on the horizon.
“Although many consumers are still feeling the pinch, brands know they cannot stand still or risk getting left behind. Continuing to explore new ways to connect with consumer targets will reap rewards in the long-term, which is why they’re right to box clever with trusted tactics to identify, target and measure their audience effectively. The trick is to stay in the game while these political headwinds blow over. It’s about making the budget work harder by prioritising precise segmentations and people-based measurement to keep pace with evolving consumer behaviours.”
Maor Sadra, CEO, INCRMNTAL
“It’s not uncommon for brands to press pause on budgets in Q3 as they gear up for the festive season, which is where we typically see the biggest spend on marketing and advertising.
“What is interesting is that the budgets that decreased in Q3 such as OOH, audio and print advertising are the ones that brand marketers often struggle to measure, because the majority of attribution solutions either don’t measure offline channels or struggle to measure these effectively.
“For complete insight into spend across all mediums, brands need to invest in solutions such as incrementality measurement, which allow them to see exactly which campaigns, across which channels – online and offline – are performing and which are not.
“At a time when many brands are both budget cautious and about to enter their biggest marketing season of the year, those that aren’t accurately measuring all of their marketing efforts stand to needlessly waste significant budget on campaigns that aren’t delivering.”
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.”
Chris Falconer, Group Managing Director, McCann Central
“Following a strong first half of the year, marked by significant new business wins and growth within our existing client base, we did notice a slowdown, with some clients becoming more cautious. As we approach the end of the year, we’re continuing to invest in areas of the business where we are seeing increasing demand, such as Social, PR, and Media, as well as our core advertising business. While we have an exciting pipeline lined up for 2025, securing new business remains crucial to closing out 2024 on a high note and positioning ourselves for success in the year ahead.”
Ellie Lane, Head of Client Strategy, Quantcast UK
“The stalling of ad spend in Q3 comes amidst a challenging market backdrop. The uncertainty ahead of the new government’s first budget speech mixed with the ongoing cost of living crisis has meant that both consumers and advertisers have tightened their belts.
“Another major reason for the pause is the uncertainty caused by Google putting the brakes on its cookie deprecation plans. This has led to increased ambiguity around online strategies, causing brands to become hesitant about their advertising approaches. With strategies up in the air, many have pulled back on their spending.
“With Black Friday and the holiday season around the corner, we can expect marketing spend to bounce back considerably as brands invest in the active audience that Christmas guarantees. Then, moving into 2025, we should see more political stability at home and further afield following the US election, so marketing teams should have more clarity over the environment they’re investing in.”
Patrick Reynolds, CMO, BlueConic
“It’s understandable that marketing budgets have stalled given the uncertainty surrounding the Autumn Budget, but marketers are a resilient group. We’ve faced budget pressures before and will do so again. In fact, when finances are constrained, that’s often when the magic happens—marketers are pushed to get creative and extract maximum value from every investment.
“One way to make spend goes further is by giving front-line doers the ability to access and use first-party data, which offers the insights they need to personalise and fine-tune marketing efforts. By leveraging strategies like contextual targeting and precision marketing techniques, businesses can optimise their campaigns to drive growth and deepen customer relationships, even in a cautious economic climate.”
James Ray, CEO, Armadillo and IPA Chair for England & Wales
“This quarter’s IPA Bellwether Report shows some interesting nuances, underneath an overall headline of advertisers soft-pedalling ahead of the upcoming budget.
“Looking at the data on evolution of marketing budgets, whilst as many businesses report cutting overall budgets as increasing them, brands have leaned in to focussed, precision and face-to-face channels harder, with PR, Events and Direct Marketing showing the greatest net increases. That points to great opportunities for clients and agencies that continue to prioritise effectiveness over all other KPIs.”
Helen Blakley, Managing Director, Genesis and IPA Chair for Northern Ireland
“As we move towards the end of 2024, the current wider political and economic backdrop has no doubt contributed to the cautious approach to marketing spends. Locally in NI, we have not escaped with the NI Executive dealing with reductions in finances which is affecting spends and whilst the recently published Ulster Bank survey noted that the private sector continued to grow in the third quarter, as always it is a mixed bag of those who consider marketing spends as an investment for future growth versus a potential opportunity to achieve short-term streamlining of costs.
“It is encouraging that the latest Bellwether figures report a second consecutive quarter of budget increases for Main Media Advertising and with key demand drivers on the horizon with the likes of Black Friday and Festive period, ad spends may be looking up for 2025.”
Sue Benson, Managing Director, The Behaviours Agency and IPA City Head for Manchester & North West
“Whilst the Q3 2024 IPA Bellwether Report findings aren’t a surprise at all they are still disappointing given the record highs seen last quarter. Every time I talk to my colleagues in the North West the conversation is broadly the same – clients are putting projects on hold or pushing back spend to 2025. I feel like I have spent the last five years saying we’ll just get the ‘insert major event’ out of the way and then it will pick up.
“With adspend forecasts rising for the rest of 2024 and 2025, hopefully the business climate will improve after the Budget and I don’t find myself saying it will all change after the US election or in the new year!”
