More industry experts react to the Q4 2024 IPA Bellwether Report, as UK marketing budgets returned to growth having stalled in the previous quarter over Autumn Budget uncertainty.
Jim Rudall, Head of EMEA, Intuit Mailchimp
“It is encouraging to see renewed marketing budget growth across the UK in Q4, perhaps indicative of just how important it was for marketers to capitalise on the quarter as a holiday shopping period. The Black Friday Cyber Monday (BFCM) weekend was popular for marketing efforts across UK businesses, particularly around audience engagement strategies. Our data revealed that London led the UK in email send volume during the Cyber Weekend – followed by Stockport, Manchester, Leeds, and Liverpool.
“Also of note is the rise in investment towards Direct marketing, likely driven in part by AI’s ability to enable hyper-personalisation. It has never been more important to deliver a personalised message in order to stand out amongst the competition, and AI certainly has a role to play in unlocking this at scale. Our recent report revealed marketers are no strangers to automation, with 85% of marketers already integrating, or planning to integrate, AI tools into their operation.
“Personalised messaging can also be optimised with channels such as SMS, which offers unparalleled immediacy. Top marketers differentiate themselves by integrating email with SMS to ensure consistent, multichannel engagement with customers. Looking ahead, the marketers who harness tools such as AI and SMS will be best positioned to drive engagement and unlock maximum ROI on their marketing spend.”
Paul Wright, Head of Uber Advertising International
“While it’s encouraging to see the more positive outlook for ad spend as we enter the new year, persistent challenges remain. Retailers, in particular, will be looking cautiously at US-led tariffs and National Insurance hikes on the horizon, and are already warning of price rises. This could impact consumer confidence and further restrict discretionary spending.
“Brands need to be strategic, investing in areas most likely to deliver results. This requires understanding consumers’ mindsets and behaviours, reaching them when it matters. Key moments in the calendar, like Valentine’s Day this quarter, for example, offer a prime opportunity to capture consumer attention – whether it’s on their way to a date or ordering food for a romantic night in.
“Success doesn’t come from one-off efforts. The report emphasizes the importance of sustained advertising investment to achieve long-term results. This includes channelling budgets toward platforms that can combine reach with deep, historical, contextual, behavioural, and real-time insight – most notably, via this first-party data that sits within retail and commerce media networks. By staying consistent and leveraging these innovative solutions, brands can ensure their ads are agile and efficient in connecting to consumers, capturing attention to drive both engagement and growth.”
Chris Falconer, Group Managing Director, McCann Central
“We closed out 2024 on a high. The final quarter brought a surge in new business, keeping us pitching right up until Christmas Eve. With continued growth across our services and specialisms helping us to end the year strongly, we once again showcased the versatility and resilience that define who we are.
“Now, as we move further into 2025, we’re ready to harness that momentum and take on the opportunities and challenges ahead. It’s time to double down on our strengths – creativity, courage, and a drive for innovation. It’s a chance to amplify the value we deliver to clients, producing work that’s not only creatively brilliant but also impactful and enduring. So, we step into the new year with optimism, energy, and a clear focus, and are excited for what’s to come.”
Charlie Celino, Strategic Development Director, News UK
“The Q4 IPA Bellwether proves there is much to be encouraged about in the year ahead and beyond. What these figures don’t indicate, though, are the shifts within existing ad spend as advertisers become increasingly concerned about brand safety. This is more important than ever as social networks signal a pull back on fact-checking, initially in the US.
“What we’re seeing is that advertisers are increasingly shifting digital spend towards media owners that can offer highly targeted, first-party audiences as well as verified, professional and brand-appropriate journalism through platforms such as News UK’s in-house platform Nucleus.”
Ellie Lane, Head of Client Strategy, Quantcast UK
“The increase in ad spend in Q4 is no surprise. Black Friday and the Christmas period were no doubt the main cause, with brands investing heavily in targeting the active audiences the festive season always delivers.
“What’s interesting is that high street retailers didn’t have a brilliant time, with footfall down in physical stores. It seems shopping has shifted online with brands now doubling down on omnichannel to capture consumer attention where it matters most. It’s an important trend that is likely to shape advertising strategies through 2025 and beyond.
“Looking at the year ahead, the outlook for the industry is mixed. The economic and political climate will undoubtedly play its part. With the measures announced in the latest Budget speech taking effect in April, businesses may cut back on ad spend to cover additional costs. It’s a similar story internationally too, as the talk of Trump increasing tariffs could result in UK brands reliant on US exports scaling back.
“CTV will continue growing, but the market is getting harder to penetrate. Every passing week there’s more content available and the likes of Netflix are investing heavily in live sports and entertainment which may prove a game-changer. What’s safe to say though, is that brands really can’t afford to ignore the medium any longer.”
Hugh Stevens, UK MD, LiveRamp
“The resurgence of UK marketing budgets highlighted in the latest UK IPA Bellwether, along with the recent announcement of slowing inflation, are grounds for optimism. While factoring in future economic headwinds, such as projected US tariffs and the potential impact of changes to the Government’s budget, consistent and substantial investment in marketing will help brands navigate this period and maximise their growth potential. The challenge is ensuring media plans are running as efficiently as possible, with budget directed at activity that will drive the best business outcomes.
“Rather than promotions, which increased this quarter and provide short-term bottom-line boosts but can damage long-term brand value, success will be through understanding who has the greatest propensity to purchase and what digital and physical marketing experiences will drive them down the funnel. Building this complete 360 view of the customer across channels and platforms is only achievable through data collaboration. An accurate 360 customer view means bringing together data from internal and external sources to unlock marketing insight and precise delivery with transparent, omnichannel measurement.
“Marketers should invest in data collaboration solutions, including data clean rooms, and align their organisations to work with owners of high-quality, first-party data, whether that be another brand, publisher, media network, or broadcaster. The outcomes will be better media targeting, planning, outcomes, and long-term business value.”
Matthew Newcomb, Regional Director for North America, UK & APAC, Azerion
“UK marketing budgets returning to growth is a welcome headline. However, digging deeper, the overall picture is still generally gloomy, with October’s budget and the market response to it still shaking out playing a part in this lack of optimism.
“This contrasts with the upbeat economic outlook in the US, where the understandable mix of expectations around how the new administration will operate is balanced by companies delivering healthy financial performances in 2024.
“Looking ahead, agencies will continue to streamline their operations, and we’d expect to see them opt to work with fewer, bigger partners; the winners in 2025 will therefore be scaled businesses with their own data and technology (making it a tough time to be an ad business in the UK with revenues of less than £10 million).
“CTV is another positive story and will show plenty of growth in the coming year and beyond, particularly as its key role in omni-channel campaigns is increasingly measured and proven.
“And last year’s return of M&A activity to the adtech arena will present some interesting and exciting opportunities in 2025…”
Phil Acton, Country Manager UK, Adform
“Although the latest IPA Bellwether report has a cautious outlook, there’s a growing sense of economic relief, especially with the recent news of UK inflation slowing. Now is the ideal time for marketers to capitalise on the increased budget and make strategic investments – particularly in technologies that can minimise media waste and maximise effectiveness.
“In the increasingly fragmented digital landscape, with over 100 significant identifiers now operating, advertisers need advanced solutions to cut through the complexity and maximise addressability. This includes technology that provides the transparency and control to optimise targeting, from curated deals, contextual to audience and retargeting, ensuring IDs work harmoniously across diverse platforms. This will drive broader reach, higher performance and more substantial results.
“As high-growth channels like Connected TV (CTV) continue to rise, these multi-ID solutions offer a powerful tool for more efficient campaigns that maximise ROI and reduce the risk of wasted spend. By taking a proactive approach today and embracing game-changing innovation, brands can ensure they stay ahead once the market rebounds in 2025/26.”
Mike Follett, CEO & founder, Lumen Research
“Whilst marketers are cautiously optimistic about overall budget growth, declining spend on main media will raise a key question for brands – are budgets being used effectively? The best ad in the world is completely useless if nobody sees it.
“An Ebiquity study in partnership with Lumen Research* found a near perfect correlation between the number of attentive seconds per thousand ad impressions delivered by a media type and the incremental profit generated for brands. In short, brands must start paying attention to attention.
“Every marketer knows that attention leads to action, but they assume that their campaigns get more attention than reality. Marketers who adopt attention as a key performance metric, will retain the competitive edge. Real world attention data shows marketers which of their ad placements get attention, and how much. Not only helping marketers fully understand ad performance, but crucially helping demonstrate marketing effectiveness to boards, and the positive impact on sales growth and hard business results.”
Guy Jackson, Chief Commercial Officer, RAAS LAB
“Despite the lingering effects of a challenging economic climate, the latest IPA Bellwether report offers an encouraging outlook on the industry’s relative optimism for the year ahead. While caution remains (it always does), I hope that one New Year’s Resolution is top of the list: to embrace AI.
“Rapidly solidifying its place as an essential tool in the industry. AI unsurprisingly makes a strong appearance in the report. Allocating budget towards AI-driven solutions is no longer an option—it’s essential for better performance. Of note is the report’s focus on the technology’s strength for personalisation. This includes reaching and engaging audiences with hyper-relevant ads in moments of intent and inspiration.
“This AI-led creativity promises to establish a new standard of premium media performance, and as investment rises, we’ll be sure to see interesting developments within this space.”
Anna Uprichard, Vice President, Commerce, EMEA, Blackhawk Network
“While budgets are tight, brands will look for quick wins; but a successful retail marketing strategy demands a shift away from short-term tactics and a focus on driving long term success. Without the right strategy, these tactics may offer fleeting gains but fail to build customer loyalty which is crucial for sustained success in a challenging market.
“Growth across both sales promotion and direct marketing are evidence of how useful they can be. Especially when it comes to acquisition. But marketers sometimes overlook these tactics when it comes to driving loyalty. Consumers are actively looking for sales promotions and getting them right can keep them coming back. For example, recent BHN research found that 57% of consumers planned to alter their shopping habits over Christmas– such as opting for less expensive brands or seeking more promotions, so retailers must evolve in order to stay competitive. Offering promotions, affordable alternatives, loyalty and accessible services will be critical to meeting this shift.
“We are also seeing our clients be creative with how they do direct marketing campaigns. For example, sending vouchers or gift cards throughout the year to help foster long term loyalty as opposed to just focusing on one off acquisition.
“A solid loyalty programme that rewards customers for their purchases can make a huge difference in driving sales, especially when the economy remains so uncertain.”
Mateusz Rumiński, VP of Product, PrimeAudience
“The Q4 IPA Bellwether report highlights the continued evolution of marketing priorities. The reported growth in direct marketing underscores a shift towards personalised, measurable strategies, with Generative AI emerging as a key enabler. By leveraging AI-driven personalisation, brands can refine audience targeting and enhance campaign results, delivering significant ROI.
“Although we may see potential economic stabilisation in 2025 compared to 2024, the digital advertising industry faces persistent challenges, including uncertainty around ID-based tracking and Google’s recent approval of fingerprinting-based technologies for some use cases. While this may signal a challenging year for traditional media, it allows brands to demonstrate the value of data-backed campaigns.
“As cookies continue to lose status as a measurement tool, understanding what drives value is more critical than ever. Those who embrace AI tools to refine creativity, boost effectiveness and improve results will be best positioned to thrive against these challenges.”
Gideon Adey, Client Services Director, UniLED Software
“The latest IPA Bellwether report is further evidence of the need for robust measurement and reporting across all media channels.
“Despite optimism and a rise in budgets, brands will remain circumspect when it comes to ad spend. Consequently, agencies will be expected to provide tangible reassurance that the media they are buying is delivering the expected ROAS. This will not be limited to the end of the run but also as the ad campaign is ‘in-flight’.
“Caution should never be the driver of independent verification for DOOH, but to be honest it probably is. This is why, we believe, we’ve had a healthy 51% uplift in bookings so far in Q1 Compared to last year. We expect this to continue for the rest of Q1 and beyond. After all, no media channel should be exempt from proving its worth. Even those such as DOOH are known for their value in times of budget constraints and their ability to over-deliver on campaign metrics.
“The Bellwether report also shows an uptick in investment in Events, reflecting advertiser’s acknowledgement that advertising “in real life (IRL)” is important in building trust with consumers. Let’s not forget that OOH/DOOH mirrors this IRL offering, providing ad campaigns with media experiences and touchpoints that help brands connect with their target audience.”
Jennifer Davidson, Founder, Sleek
“The latest report shows the experience economy is thriving. Events marketing is up +12.3% proving what we’ve always known: people crave authentic, memorable moments over traditional advertising. It’s no longer good enough to just talk to consumers, they need to be invited into the brand story. Brands are investing in creating moments that don’t just sell but genuinely move people.
“What’s exciting about this quarter’s report is how technology like AI and immersive tech are making experiences more personalised and impactful. Brands are betting big on creating experiences that truly connect the digital and physical worlds.
“Return on Experience (ROX) is the metric that matters, as it assesses the impact of experiences on brand loyalty and business success. While creativity plays an essential role, it’s not enough on its own. What truly matters is authenticity and responsibility, with sustainability becoming more important than ever.
“As someone who’s been championing experiences for years, it’s great to see the industry validate what we’ve always believed: experience is everything.”
Rob Blake, Country Manager, UK, Channel Factory
“The cautious but steady return to growth for marketing budgets reflects ongoing apprehension in the industry. Caution doesn’t have to mean standing still, in fact, it’s the perfect moment for advertisers to be strategic. While budgets and consumer confidence fluctuate, advertisers have more control than they realise.
“There are concrete steps businesses can take to firm up their advertising strategy, ensuring that every single penny delivers against their goals rather than continuously having to tweak budgets because they cannot be certain of performance. By leveraging contextual targeting and demanding greater transparency in ad placement, advertisers can optimise the impact of every ad pound they spend and eliminate uncertainty around performance.
“When the advertising and marketing industry chooses to focus more on the outcome of the campaign instead of quick wins then we no longer need to bite our nails in the hopes of a positive Bellwether report every quarter because our value to business goals is so clearly defined.”
*This article features a mixture of Bluestripe clients and external contributors
