Industry experts react to the Q1 2025 IPA Bellwether Report, where it was revealed that UK marketing budgets experienced their first overall decline in four years, as businesses opted for a more cautious approach in response to Donald Trump and rising costs.
Paul Wright, Head of Uber Advertising International
“With the current economic uncertainty, marketers should get used to being asked to do more with less, which means making sure every interaction with a consumer works harder.
“That’s where we think consumer attention matters over just the number of impressions you can buy. It’s about catching people at the right moment so that those impressions count. When someone is waiting for a ride or tracking their delivery, they’re naturally more engaged. Those high-attention moments are where brands can punch above their budget’s weight.
“Research we conducted with Lumen found ads on the Uber platform deliver 6.6 times more attentive seconds than standard digital formats. And that attention pays off: just 2.5 seconds of attention led to 50% ad recall and a 27% lift in brand consideration.
“Economic environments will always shift, but one thing is clear: investing in attention isn’t just smart, it’s essential. It’s how brands can make their media spend work harder, connect with consumers more meaningfully, and ultimately drive better outcomes.”
Jim Rudall, Head of EMEA, Intuit Mailchimp
“The figures from the latest IPA Bellwether report are a stark reminder of the impact the wider economy can have on the marketing sector. ROI has never been more important and every penny needs to drive results. The question is therefore how can marketers do more with less? Above all, they must be highly strategic in how they connect with their audience. Harnessing data is key to segment their targets and tailor messaging accordingly—unlocking true personalisation at scale.
“Mailchimp research reveals almost a quarter (23%) of UK consumers want to see more personalised brand marketing campaigns and, crucially, nearly two-thirds (62%) are happy to share their data if they receive meaningful personalisation in return. Furthermore, over a third (36%) say personalisation stops them “missing out” on products, trends and deals—and 43% appreciate being kept up to date with limited stock or exclusive items. This ties into the notable increases in direct marketing and sales promotions observed in the latest IPA Bellwether findings.
“One key strategy marketers should harness to boost their direct marketing and sales promotions is SMS outreach, which offers unrivalled immediacy and impact—especially when used to complement email campaigns as part of a multichannel approach. Timely promotions or reminders such as personalised ‘annual sales’ or ‘back-in-stock’ messages are powerful mechanisms to attract attention in what is a competitive market. And after all, nobody wants to miss out on a good deal—as reflected in our Mailchimp SMS average unsubscribe rate of <0.1%.
“The key is to meet consumers where they are, with messaging that feels relevant and responsive. With direct marketing on the rise for the second consecutive quarter, it is important that marketers harness the power of SMS in order to maximise ROI on their budgets in the months ahead.”
Alexia Nakad, VP of Brands, UK and MENA, LiveRamp
“The latest IPA Bellwether report presents a mixed picture of immediate headwinds and future optimism, but ultimately the first decline of marketing budgets in four years serves as a reminder that we are in an era of outcomes. Marketers are under pressure to do more with less, and what matters in this climate is driving positive, measurable business results.
“This does not mean resorting to quick-fix spending aimed at short-term gains only. Marketers need to be wary of an over-reliance on sales promotions that might deliver a short-term boost, but at the expense of long-term brand value perception. Instead, the focus should be on a strategic, data-driven approach that creates a comprehensive and measurable view of their audiences’ path to purchase. This not only helps optimise media across the customer journey for better results, but also provides a clear picture of what is performing, return on advertising spend (ROAS), and incremental return on advertising spend (iROAS), to understand what is driving customer growth. Marketers can then use these results as proof of success to give their C-suite confidence that investment in marketing drives the outcomes required for business success moving forward.
“Building this view requires a partnership mindset centred around data collaboration with other businesses, as no single organisation can see the whole customer journey on its own. Marketers should look to embrace technologies that facilitate these partnerships, including neutral and interoperable data clean rooms that can connect seamlessly across the full range of high-quality data owners.
“Access to such data can be unlocked from a variety of partnerships, whether it be endemic or non-endemic brands, publishers, and even walled gardens. Additionally, it is important to ensure that action can be driven from access to data, and that means going beyond insight-only use cases into activation and measurement. As such, it is imperative to also consider the network that can be unlocked in conjunction with the data collaboration technology itself. Those that prioritise this strategic collaboration and data-driven strategies over short-term tactics will be best positioned to drive outcomes now and into the future.”
Dean Nagib, commercial director, Azerion UK
“While the decline in UK marketing budgets in Q1 2025 signals understandable caution, the long-term optimism reflected in the current IPA Bellwether Report is encouraging. The uptick in direct marketing, events and sales promotions for example is a clear sign that brands are shifting towards more agile and measurable channels.
“In times of uncertainty, data-driven, performance-led strategies underpinned with robust technology become even more vital, so the reported resilience in budget allocations for digital and direct marketing is promising. It also mirrors the growing demand for the personalised, real-time engagement we deliver through our omnichannel platform that enables buyers to make smarter decisions across every advertising channel – from video, DOOH and display to CTV.
“It’s equally essential to balance performance with brand building for the longer term, however challenging the landscape; despite the cuts faced by the main media this quarter, the rebound forecast for 2025/26 underlines this importance.”
Julie Selman, SVP, Head of EMEA at Magnite
“The Q1 2025 IPA Bellwether report highlights video’s resilience, with spend rebounding sharply after a dip in the previous quarter. This upward momentum signals broader recognition of video’s unique value in today’s media mix. As media budgets come under closer scrutiny, video continues to prove its impact as a high-performing, results-driven channel.
“With overall marketing budgets set to recover over the course of the year according to the report, there is huge potential for video to experience even more growth. Brands that embrace its full potential will be better equipped to connect with audiences in meaningful ways and capitalise on shifting consumer behaviours across the streaming landscape.”
Guy Jackson, Chief Commercial Officer, RAAS LAB
“As advertisers navigate the challenges of rising operational costs and new economic pressures, the objective is clear: achieve greater impact with leaner budgets. This does not mean scaling back activity but instead being smarter with it. Moving away from the traditional broad-stroke approach to more precise delivery, with enhanced engagement and yielding better returns.
“As respondents to the IPA report highlighted, this is being propelled by the next wave of AI for efficient media performance. The technology can analyse data at the impression level, to ensure that the right user is reached at the optimal time, with hyper-relevant messaging tailored to resonate deeply and drive measurable results.
“By investing in AI-led creativity, advertisers will stay ahead of the curve and distinguish their brands in a crowded marketplace with receptive consumers – unlocking improved outcomes during this period and beyond.”
Elie Kauffmann, Head of Sales, Audion
“While the Bellwether Report highlights a measured start to 2025 for UK marketing budgets, the continued investment in direct, event-based and promotional activity shows that brands remain committed to maintaining strong consumer connections, even in a complex economic landscape. This outlook is reinforced by the positive forecasts for further down the line.
“Digital audio continues to stand out as a resilient and high-impact advertising channel thanks to its versatile attributes. We’ve witnessed this first-hand at Audion, with strong results for the first quarter of this year, despite the broader category trend indicated in the report – a clear sign that advertisers are increasingly recognising audio’s unique ability to drive attention, engagement and emotional connection at scale. As marketers look for efficient and flexible solutions to navigate uncertainty, we believe digital audio will play an even greater role in delivering both short-term performance and long-term brand growth.”
Aleksandra Drozda, Head of Sales Development and Efficiency, RTB House
“Despite the decrease in budgets indicated in the Q1 2025 IPA Bellwether report, marketers should still be optimistic. With long-term growth predicted, there are still strong chances for future success, but marketers need to rethink their plans. Now is the time to review the solutions used to enhance campaigns, looking at programmatic and AI-driven tools that maximise engagement and ensure ROI.
“These scalable, performance-based advertising strategies are available to ensure brands achieve measurable results, remaining effective regardless of remaining effective regardless of the economic environment. By integrating Gen AI to speed up processes that can be optimised at scale, marketers can ensure they thrive, not only now, but also as budgets rebound in 2026.”
Graham Field, Chief Revenue Officer – Retail/Media, Outra
“In a climate of tightening budgets and intensified performance scrutiny, marketing leaders are under unprecedented pressure to prove impact. The latest Bellwether report makes it clear: the era of broad, unmeasured activity is being eclipsed by a shift toward precision, accountability, and results. Growth in direct marketing spend is more than a trend — it’s a strategic recalibration.
“What we’re witnessing is not just a budgetary response, but a structural evolution. Marketing effectiveness is being redefined by the quality of data, not the quantity of spend. As traditional market research temporarily contracts, organisations are increasingly seeking smarter, more adaptive ways to understand and engage audiences. And as AI matures, the expectation is no longer just faster insight — but real-time, actionable intelligence.
“This is where granular, household-level data becomes transformative. Knowing who your customer is has always mattered. Now, knowing when they’re most receptive — and being able to act on that moment with relevance and precision — is a game changer. Home mover signals, for instance, are more than just demographic shifts; they’re powerful predictors of intent, behavior, and need. When you combine these with robust household profiles, the result is marketing that doesn’t just reach people — it resonates.
“Winning brands will be those who align with partners that can deliver this kind of intelligence — enabling segmentation that’s not just sharper, but more strategic. Engagement that’s not just personal, but timely. And outcomes that aren’t just measured, but maximised.”
Christoph Gerber, CEO and Founder, Talon.One
“This morning’s IPA Bellwether report will cause concern among marketers, but it is important they now hold their nerve. Rushing to invest in blanket discounts is a knee jerk reaction that amounts to ‘short term gain, long term pain’. While this might provide a quick sales boost, we have seen time and again that this kind of “distress discounting” ultimately erodes margins, and conditions customers to expect lower prices from brands.
“Volatility and uncertainty is the norm now, and brands need to focus marketing budgets on the activities proven to drive long-term profitability and loyalty. Data-led loyalty programmes and personalised, timely promotions are the strongest tools for marketers not just looking to drive short term sales, but maintain and increase customer loyalty and ROI over the coming months.”
Lauren Maynard, Chief Growth Officer, FutureBrand
“In the midst of economic chaos driven by external factors such as Trump’s tariffs, tougher cuts in marketing spend this quarter are unsurprising. However, marketers forecasting budget increases in 2026 tells you that businesses are expecting instability to be near-term.
“The data reflects an immediate tilt towards bottom-of-the-funnel tactics such as direct marketing, sales promotions, and events. But we know from past cycles that deprioritising brand-building investments and redirecting to lower-funnel efforts may give you a short-term bump but is detrimental in the long term. If budgets must shift, they should do so with clarity on the brand attributes that matter most to customers and a plan for how lower-funnel efforts can reinforce them without diluting brand equity.
“Ford’s “From America, For America” promotion is a strong example. Unveiled the same day a new 25% U.S. tariff on foreign vehicles took effect, the campaign offered employee pricing to all customers. “It not only boosted sales, helping clear lots and keep production lines moving, but also doubled down on Ford’s America-first positioning, delivering bottom-line impact while reinforcing brand identity at a moment of heightened consumer nationalism.
“In a climate where all competitors face similar pressures, brand differentiation like this is key. The brands that show up when it counts are the ones people return to when confidence rebounds. It’s not just about surviving the storm, but building loyalty that lasts beyond it.”
