New Digital Age gathered industry reaction to the latest IPA Bellwether report, examining ad spending during the final quarter of 2025…
Simon Thorne, Managing Director EMEA at Innovid:
“In today’s climate of economic uncertainty and tighter marketing budgets, it’s no surprise that advertisers are doubling down on performance marketing. With so many channels available, and AI now enabling marketers to build and activate strategies seamlessly across digital platforms, the focus is firmly on ROI. The latest report only reinforces this trend. While overall marketing budgets are forecast to grow only modestly (+1.7%), main media is set to decline (–3.1%), whereas performance-driven channels continue to gain traction. This shift underlines the importance of adopting the right tools to optimise performance across all channels, not only to survive, but to thrive in a competitive landscape.”
Alfie Atkinson, CEO, MiQ:
“Flat budgets and falling confidence in Q4 are make it clear that marketing teams are not insulated from wider business pressures. CMOs are being asked to drive growth in an uncertain environment, leaving less room for risk-taking and far greater scrutiny of spend.
Even in a cautious quarter, there are clear signals of where confidence remains. Online is showing meaningful growth, as marketers prioritise flexibility and clearer feedback over broader, harder-to-defend bets.
“Understanding how consumers are buying, watching and browsing today, not a year ago, is also clearly an advantage. For example, it’s just been reported that 77% of YouTube views are now short form – that’s something marketers have to consider when thinking about their audience planning strategies. With another uncertain year ahead, progress will depend on teams’ collaboration, innovation, and courage to back informed decisions, rather than defaulting to caution and cutting back. In flat markets such as this, standing still is often the biggest risk to brands.”
Tilman Harmeling, Senior Privacy Expert, Usercentrics:
“With UK marketing budgets flat, and advertiser confidence weakening, brands can’t rely on spend alone to drive growth in 2026. The Bellwether data shows marketers pulling back from broad reach media and retreating to what they can control, measure and defend: owned, first-party and performance-led digital activity. But that strategy only works if consumers opt in. With 73% saying they would abandon a brand over data misuse, and nearly half clicking ‘accept all’ less than they did three years ago, privacy and consent are no longer compliance hygiene – they’re the infrastructure that keeps digital performance working. Brands that treat privacy as part of the customer experience, not an afterthought, will be far better placed to build loyalty in a market where long-term growth will be driven by trust.”
Karin Seymour, Client and Marketing Director at Sky Media:
”When every pound is under scrutiny, effectiveness matters more than ever in driving growth. Brand-building has repeatedly been shown to deliver both short-term impact and long-term growth and is why we’re seeing advertisers focus their media investment in trusted, premium environments like TV that give brands a clear advantage.”
Sam Panzer, Director of Industry Strategy at Talon.One:
“Marketing spend is under intense scrutiny this year, so brands need to focus on activities with proven returns on investment if they are to unlock budgets. In this context, budget-conscious boards will rightly be sceptical of margin-eroding sales activity, such as blanket discounting. Brands burn millions every year on poorly-performing promotions. Eliminating that wasted spend is the fastest path to profit, and it frees up budget for marketing activities that actually move the needle.
“Loyalty programs are fast becoming one of the most powerful tools in a marketer’s toolkit to deliver tangible business benefits. Forward thinking brands like Sephora have begun making access to promotions contingent on signing up to schemes, unifying loyalty and promotions strategies under the umbrella of incentives marketing. Last year, our research found that amongst enterprise brands that have integrated promotions and loyalty strategies, 58% saw increased sales revenue whilst 40% saw increased ROI .
“As marketers fight for budgets in 2026, the smart option is to bring together activities that shows to every stakeholder in the boardroom – especially the CFO – the tangible value it delivers.”
Phil Duffield, VP Northern Europe, The Trade Desk:
“The report underscores a familiar challenge: when budgets tighten, the instinct is often to chase cheap reach by doubling down on Big Tech. But reach without attention doesn’t deliver return. Premium media shouldn’t be seen as a cost, but as the message itself – driving trust, attention and effectiveness when every pound must work harder. Too much spend still flows into environments that fail to capture attention and meet marketer objectives.”
“The open internet, and premium media in particular, remains the most reliable path to driving returns in 2026. Our latest research shows premium environments is where audiences are most engaged, with streaming TV and digital audio 1.3x more effective at driving purchase intent than less premium alternatives.”
“Brands that continue to invest in premium, data-driven advertising are better placed to build visibility and grow market share over time, particularly when that investment supports long-term brand building.”
Chris Daly, CEO at the Chartered Institute of Marketing (CIM):
“It’s clear from the latest IPA Bellwether figures that the outlook for the UK marketing budgets remains uncertain. Economic headwinds continue to chip away at UK businesses – from ongoing price pressures in key categories, to continued cost challenges and mixed consumer confidence. We’ve also seen business confidence weaken recently, with many companies still unsure about future sales and investment in both staff and marketing.
“Under these conditions, it’s understandable that brands are tightening their belts. That often shows up as a shift towards highly measurable, performance‑led activity, and delayed or scaled‑back spending on broader brand building.
“But taking a cautious approach does bring an element of risk. To navigate this period, organisations need strong marketing capability – staying flexible and disciplined, using data and insight to focus spend where it drives both short‑term results and long‑term differentiation. Those that invest in marketing capability, not just channels, will be better placed to respond to change and capitalise when confidence returns.”
Sarah Logan, Head of Agency Partnerships, EMEA, Intuit Mailchimp:
“To see UK marketing budgets flatline in Q4 2025 may be indicative of the wider economic challenges we have been seeing over recent months, but it is concerning nonetheless. The fact that sales promotions budgets recorded no change (0%) is significant, given Q4 is such a crucial period for retailers and marketers throughout the holiday shopping season. In the months ahead, marketers need to look beyond promotions and focus efforts on long-term brand- and relationship-building.
“Personalisation is a crucial tactic for marketers, many of whom find themselves having to do more with less lately. Intuit Mailchimp research shows that the appetite is there, with almost two-thirds (62%) of UK consumers happy to trade their personal data if they see the benefit. With 37% of business leaders* saying that capturing attention and converting the very first sale is a major hurdle, effective personalisation offers marketers a valuable opportunity to stand out and connect with their audience in a meaningful way. This in turn helps to build loyal fanbases of repeat customers—a struggle faced by 40% of business leaders*.”
*According to Mailchimp’s study in late July 2025, in partnership with Sapio research.
Dean Nagib, UK country manager at Azerion:
“The latest Bellwether report reflects what many across the advertising industry experienced in Q4 – a tough domestic market combined with wider global uncertainty made it a challenging period. These are complex times, but it’s important to be rational and remember that this is a resilient, innovative and creative industry.
“Advertising isn’t something to be switched on and off depending on how much money is in the pot; it is a vital and ongoing element of any long-term business strategy. Experience consistently shows that organisations that continue to invest in marketing and brand-building, even when trading conditions are difficult, are better able to deliver sustained and consistent growth.
“Omnichannel advertising (reinforced with robust and innovative technology platforms) plays a key role here as enterprises look to hone the channels, targeting, creatives and measurement that enable them to deliver ROI as well as continue to build their brands for the future.”
Jade Raad, Chief Growth Officer, Jungle Creations:
“The Bellwether captures a market under pressure. Budgets are tight, confidence is shaky, and marketers are weighing every decision more carefully than usual. In that environment, it becomes clearer where influence now sits. Social has become the place where attention gathers, opinions form, and brands are tested in real time. When spend is under scrutiny, its ability to deliver scale and measurable impact matters.
“As traditional channels continue to fragment, visibility is harder to hold. Audiences are spending more of their time in social spaces, shaping expectations through conversation rather than passive exposure. With consumer confidence weak, brands need to show up consistently, listen, and respond. Social allows that relationship to develop when reassurance and relevance count most.
“The weakest forward outlook on record should not be read as a cue to retreat. Brands that remain visible during uncertain periods tend to benefit when confidence returns. In 2026, staying present means investing where people already are.”
Rachel Macey, Managing Director, Kantar Media TGI UK & Europe:
“This data continues a striking trend as market research budgets fall, signalling a shift in how brands seek to understand their audiences. This is an evolution rather than a retreat as the industry seeks to balance established research capabilities with AI-enabled approaches informed by synthetic data.
“While agility and cost are invaluable, that’s just one part of the story. The challenge remains to combine the credibility of robust research with the efficiency of new technologies, especially when consumer behaviour becomes trickier for AI to replicate accurately. Synthetic data will only ever be as good as the source data behind it and the human touch will continue to be vital. So even if the costs and scale are coming down, advertisers still need to understand what real people think in order to reach and target them effectively.”
Elie Kauffmann, head of sales for EMEA, Audion:
“Ongoing global volatility and subdued confidence at home have created a challenging environment in which to operate. Understandably this has influenced marketing investment decisions; the latest ‘flatline’ Bellwether figures are sobering, but not hugely surprising.
“However, the reported decline in audio does not reflect our experience at Audion; 2025 was a strong year for the business – including in the UK – as more advertisers turned to digital audio to engage with consumers and deliver effective campaigns. Once viewed primarily as a brand-building channel, audio is now firmly established as a full-funnel, performance-driven lever.
“Moreover, now the UK restrictions around advertising less healthy food (LHF) are fully enforceable, there is a clear opportunity for audio, one of the few channels that remains unaffected by the legislation. Digital audio offers a workable and competent solution at any time, but as brands face pressure to show ROI while navigating regulatory and economic headwinds, it could be exactly the salve that is required.
“Looking at the wider picture, in quieter and more uncertain markets, sustained investment matters. Advertisers that continue to show up are better able to build long-term value and market share. This is where audio, with its capacity to combine emotional impact with precision and scale, continues to prove its resilience.”
Paul Samuels, President – Global Partnerships at AEG International:
“Marketers expect further growth in event budgets throughout 2026 and into 2027, as brands continue to use events to get face to face with audiences and cut through the noise in the increasingly fragmented media landscape. New restrictions on advertising media are pushing marketers to consider other avenues to capture audiences’ attention, and events are perhaps seen as an appealing alternative, as they provide more touchpoints over a longer period.
“Whilst roundtables, webinars and conferences form part of the picture, the demand for live entertainment partnerships only continues to grow. We’re experiencing an influx of interest from marketers who want to use partnerships to connect with highly engaged fan communities across multiple channels, using their budgets to strengthen awareness of what their brand stands for and become associated with some of fans’ most memorable experiences.”
Daniel Todaro, CEO at retail marketing consultancy Gekko:
“The predicted reduction in budgets for sales promotions is a sign of the times. Businesses, particularly those in hospitality and retail, are struggling in the face of rising costs, government policy and changing consumer behaviour, and they have to prioritise marketing activity that delivers long-term results – rather than temporary solutions.
“Whilst household discretionary spending is expected to remain restricted well into 2026, and consumers are seeking value for money, big discounts are not getting the same traction they used to. Sales promotions may boost sales but they do not build customer loyalty or long-term equity – and few consumers are prepared to purchase from those not on their mental roster of preferred brands. They also squeeze profit margins more than many other strands of the marketing mix, so it is easy to see why brands might allocate budgets elsewhere.
“If the expected reduction in promotional budgets does become reality, marketers may need to make choices between point-of-sale promos, which offer practical benefits for squeezed consumers and immediately impact revenue, and ‘surprise and delight’ approaches in alternative locations that have longer-term benefits on brand equity but lack the same instant results.”
Ellie Lane, head of client strategy, Quantcast:
“Ad spend stalling in Q4 is a real kick in the teeth for the industry. It’s typically when brands invest most heavily to target the active audiences Black Friday and the Christmas period always bring. So to see this wasn’t the case highlights just how challenging the current market is.
“Trepidation around the Budget, fuelled by the leaks and tax rumours, appears to have dented both business and consumer confidence. Footfall fell for the eight consecutive month in December, as Black Friday failed to deliver the usual boost despite early and deep discounting. According to KPMG, nearly half of consumers reported cutting discretionary spending in Q4, while over half think the UK economy is worsening.
“The question now is whether that trend carries into the new year. Spending usually tightens in Q1, although consumers may still splash out on holidays at the beginning of the year. With key sporting events on the horizon, including the Six Nations and the FIFA World Cup, brands are already investing ahead of the action to engage active audiences.
“Looking ahead to 2026, AI will continue to play a major role in advertising – but consumers don’t respond to slop. Success will hinge on investing in genuine, data-driven AI, executed carefully with human judgment. It’s not about removing the human touch, but about striking the right balance between smart automation and creative oversight to stay relevant, precise and visible across channels.”
