More 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.
Justin Reid, Senior Director of Global Partnerships Solutions, Tripadvisor
“The latest IPA Bellwether report paints a pretty promising picture for advertising – budgets might be down this quarter, but are holding strong, and some golden opportunities are coming up. The report highlights opportunities in a packed summer of flagship events, especially around women’s sport, and a rising appetite for experiential activities. It means advertisers have a real chance to tap into audiences who are travelling. Whether they are searching for local hotels, planning meals around visiting sporting venues, booking a trip, or actually on the move – those are prime moments for brands to connect with huge audiences.
“Sure, the report notes that some macroeconomic clouds are on the horizon, which could see budgets stripped back. But that shouldn’t stop advertisers from making the most of key moments that capture audiences. It’s all about being smart and showing up authentically where people engage at every point of their trip.”
Dom Boyd, Managing Director of Insights, Kantar UK
“It’s been quite the rollercoaster for businesses and it doesn’t look like we’ll be getting off the ride soon. Some organisations hit the panic button last quarter as the tariff threat loomed, but they need to avoid making it a habit. Brand building gives businesses options – the power to hold or to even put prices up without shedding volume or denting profit margins. Amid so much uncertainty, that room for manoeuvre is invaluable. Chopping budgets might seem like the answer now but boardrooms will likely regret it down the line. It takes time to build strong, meaningfully different brands and right now, firms in a weaker position don’t have a minute to waste.”
Ed Wale, VP, International, LG Ad Solutions
“The latest IPA Bellwether signals a shift — not a pullback, but a pivot to what delivers. Budgets may be tightening, but investment is sharpening. Advertisers are doubling down on channels that offer precision, performance, and proof — and CTV delivers all three. AI is no longer hype; it’s driving smarter strategies, sharper targeting, and real results. With over a third of brands planning to increase spend in 2025/26, the message is clear: this isn’t retreat. It’s recalibration with intent.”
Ellie Lane, head of client strategy, Quantcast UK
“Q4 is always a significant month for consumer spending. There’s Halloween, Black Friday and then Christmas. Given the current economic landscape, it’s no surprise to see ad spend slowing in Q1 – brands will have expected people to tighten the purse strings and acted accordingly.
“That’s not to say the quarter was a dud by any stretch. Ongoing discussions with our clients show there has been a continued move towards truly omnichannel digital campaigns, while the January sales, Cheltenham Festival and the Six Nations will have seen heavy investment from brands across the UK. Just not at the same level of ‘peak’ season.
“Looking ahead, it’s tough to predict how the rest of 2025 will play out. Omnichannel will undoubtedly continue to dominate, but before we can say with any certainty that ad spend will continue to increase, consumer confidence needs to improve.
“Many were looking towards last month’s Spring Statement to steady economic uncertainty, but that takes time. Analysis suggests 3.8 million families will now be better off as a result of the announced changes but, it’s predicted 3 million will be worse off. So only time will tell if consumer confidence does increase, and bring spending up with it.”
Nick Reid, SVP & Managing Director EMEA, DoubleVerify
“AI-led media efficiency is revolutionising digital advertising by safeguarding media from low-quality content and enhancing overall performance. This trend is confirmed by IPA Bellwether’s most recent report, which highlights the sustained high demand for AI solutions in advertising.
“Custom bidding algorithms are a key component of this transformation. By processing signals such as first-party data and offline sales insights, they dynamically optimise media strategies, ensuring ad spend supports brand-specific outcomes. As tailored AI solutions become more widely available, across open web and walled garden environments like social, they will lead the way for brands aiming for stronger performance and more meaningful business results.”
Kim Berkin, Managing Director, Charlie Oscar
“The picture painted by this quarter’s Bellwether is a bit bleak, but for agencies it should be a wake-up call to really focus on value.
“The report shows cuts, yes, but spend is being redirected, not abandoned. We’re seeing brands lean into digital channels that blend performance with brand building, a shift that reflects a desire for marketing that’s both measurable and accountable.
“We need to be relentless in showing how marketing drives commercial outcomes, not just impressions. That means (finally) ditching last-click thinking and investing in proper measurement like MMM, not vanity metrics.
“Growth will come from staying close to clients’ business problems. Agencies that bring ideas rooted in outcomes will keep growing, even when the market contracts.”
Phil Acton, Country Manager UK, Adform
“In the face of economic uncertainty, some advertisers are thinking twice about investing in their tech infrastructure and instead are waiting until budgets are stronger. But as respondents to the latest IPA report have highlighted, this is a mistake. Choosing to kick the investment can down the road now will reduce advertising effectiveness in the long run. No pound of media spend can go to waste – the bottom line needs to benefit now with measurable outcomes across channels.
“In today’s fragmented media landscape – with hundreds of identifiers and diverse formats – the days of relying solely on human intuition for media efficiency are over. Achieving clear attribution in this omnichannel, multi-ID environment demands game-changing technology that integrates disparate data in real-time.
“The automated intelligence of AI could not have come at a better time, and it is clear from the report’s respondents that the technology is regarded as a lifeline. Enabling media-buying teams to be smarter with spend allocation across the omnichannel mix, this next stage of ‘agentic AI’ is optimising bidding to achieve new levels of reach, effectiveness, and efficiency.
“Those who engage this technology today will ensure that their budgets go to the outcomes that matter, and will also unlock for themselves a robust launch pad for further growth once budgets bounce back.”
Maor Sadra, CEO & Co-founder, INCRMNTAL
“There’s a tendency to assume that when marketers keep budgets fixed or reduce them, it’s a cause for concern and directly linked to economic instability and uncertainty. Of course, this can be the case, but there’s also many brands that aren’t increasing budgets because they don’t need to.
“Innovations in marketing measurement mean that brands now have the ability to understand exactly how their marketing campaigns and tactics are performing across all channels online and offline. And also, the impact that external events such as the US tariffs or even the weather are having on sales and other KPIs.
“The upshot of this is that many marketers are making educated decisions to cut budgets on channels that aren’t performing, while potentially reinvesting those savings into the mediums that are.
“The research shows that across all main media categories at least 70% of marketers are set to spend the same or increase their budget in each area. To me, this does not signal worry or doubt, rather it may be a sign that many brands are getting more for their money by measuring effectively.”
Mateusz Rumiński, VP of Product, PrimeAudience
“It is no secret that the current economic environment is making the future of the industry look uncertain, as the IPA Bellwether report indicates. PrimeAudience data backs this up, too, stating that 62% of UK marketers are concerned about rising advertising costs. This, combined with lower budgets, makes it unsurprising that confidence is low, but this doesn’t need to be the case.
“Rather than sitting back and waiting, marketers can find efficiencies in the tools they use to succeed. The key here is to prioritise simplicity and flexibility. Marketers must remove the friction of entering into vendor partnerships and operate through curated deals in order to act quickly.
“The future lies in Generative AI-based technology. Using these tactics to drive efficiency, results can remain strong, even if budgets and impressions are shrinking. This technology is moving targeting forward, ensuring that brands understand their customers and their needs to accelerate long-term success.”
Gideon Adey, Client Services Director, UniLED Software
“With the decline in marketing budgets, especially the net decrease in main media in Q1, the industry must focus on ensuring effective ad spend. Every media channel will need to prove its worth.
“The need for knowledge is considerably more important when exploiting a softer market.
“Any agency or advertiser worth their weight in gold will be monitoring every single pound spent across every media channel. This will give them a clear and concise picture of where ad spend is effective. And more importantly where it’s been wasted.
“All ROI models need accurate input data. This is not always the case. In a soft market the difference between media planned and media delivered can be very significant. For DOOH this includes the verification of precise media delivery.
“With reduced spend, comes an increase in the likelihood of DOOH over delivery if the market is not fully sold. But at the same time a greater responsibility to ensure compliance. Tracking any over delivery precisely is critical in measuring ad effectiveness.”
