Following a reduction in UK marketing budgets for the first time in four years in the opening quarter of 2025, the latest IPA Bellwether survey data revealed a robust rebound in advertising spending in Q2.
Despite ongoing geopolitical and economic uncertainty, increased operational costs and a general lack of confidence across the marketplace, a net balance of +5.5% of Bellwether panellists reported a rise in their total marketing budgets for the second quarter of 2025, a notable improvement from -4.8% in the prior quarter.
The uptick in advertisement budgets is the most significant since Q2 2024. Underlying data indicated that 22.7% of panellists registered a rise, compared to 17.2% reporting a reduction in their budgets.
Several factors contributed to this rise in marketing activity, according to anecdotal evidence, with companies recognising the need for more direct targeting of their audiences, prompting an increase in investment in digital channels. Additionally, the launch of new products drove further marketing efforts as companies looked to give their brands new platforms.
A breakdown of spending plans revealed that marketing executives raised their expenditures for sales promotions and direct marketing to the greatest degrees, with the respective net balances rising from +8.0% to +9.4% and +9.0% to +9.1%.
Meanwhile, after signalling a reduction in the previous two quarters, budgets for the big-ticket main media category remained unchanged on the quarter (net balance at -6.7% previously).
Commenting on the latest survey, IPA Director General Paul Bainsfair said: “Looking at the broader picture, we welcome the news that UK companies have revised their marketing spend upwards in Q2. Advertising is a fundamental part of the Creative Industries, one of the eight sectors prioritised by the Industrial Strategy as key to the UK’s growth. This uptick in marketing investment not only contributes to the overall health of the UK economy but, for businesses with the foresight to invest strategically, it can also lead to significant growth and competitive advantage.
“However, a closer look at this quarter’s findings reveals that the increase in spend is largely driven by tactical approaches. While agility is crucial in today’s fast-paced market, it’s essential that short-term activation efforts are balanced with sustained investment in long-term, emotionally-driven brand-building strategies. By striking this balance, companies can position themselves not only for immediate success but also for enduring growth in an increasingly competitive landscape.”
The Bellwether Report is researched and published by S&P Global on behalf of the Institute of Practitioners in Advertising. The report features original data drawn from a panel of around 300 UK marketing professionals and provides a key indicator of the health of the economy. The survey panel has been carefully selected to represent all key business sectors, drawn primarily from the nation’s top 1000 companies.
