UK companies revised their marketing budgets up to the second highest level in two years in Q2 2026, according to the latest IPA Bellwether Report.
After a strong start to the year, 23.8% of respondents reported an increase to their marketing spend, in comparison with 16.9% who recorded cuts. The resulting net balance of +6.9%, slightly below Q1’s +7.3%, pointed to a historically strong expansion in budgets. Meanwhile, approximately 59.4% of respondents left their marketing budgets unchanged in Q2.
As in the opening quarter, events was the leading category for greater marketing investment with a net balance of +11.0% registering growth. This was followed by direct marketing that registered a modestly positive net balance of +3.0%.
Main media advertising and PR also recorded modest growth in budgets at +1.5% and +1.4%. However, net balances retreated notably in the latest quarter, down from +4.5% and +6.0%, respectively.
A breakdown of the main media segment showed that Video was the only one of the five tracked sub-areas to record growth in Q2, with its net balance rising from +5.7% to a seven-quarter high of +8.2%. Meanwhile, budgets for Audio stabilised (net balance of 0.0%) after 12 consecutive quarters of decline.
The remaining three sub-segments (Published brands, Other online, Out of Home) all saw reductions in spending. Marketing executives also trimmed budgets for both market research and “other” activities, the latter covering all remaining paid-for marketing activity, during Q2.
Sentiment among Bellwether panellists regarding company-own and industry-wide financial prospects took a turn for the worse during the latest survey period. Underlying data show that nearly a third of respondents (32.3%) felt less upbeat about their financial outlook than they did three months ago, more than offsetting the 22.8% of firms that were optimistic. 36.5% of panellists expect a deterioration in industry-wide conditions, more than three times the share that anticipate improvement (11.4%).
Commenting on the findings, Paul Bainsfair, Director General, IPA, said: “The overriding message from this quarter’s report is that UK companies continue to recognise the value of advertising.”
Bainsfair added that it is “understandable” that UK companies’ financial confidence levels have taken a hit this quarter, amid geopolitical turmoil, wars, ongoing heightened inflation, supply-chain disruption, and domestic political upheaval.
“In light of such challenges, it is therefore more important than ever that companies play the long game and continue to invest in brand-building media that is proven to be better placed to drive sustainable business growth,” said Bansfair.
Maryam Baluch, Economist at S&P Global Market Intelligence and author of the Bellwether Report, commented: “Bellwether panellists have demonstrated notable resilience against a backdrop of persistent economic uncertainty. By continuing to bolster marketing spend – particularly as high inflation threatens to weigh on consumer demand – respondents are indicating a commitment to investment and brand-building activities that underpin growth.
“The fact there hasn’t been a considerable scaling back of activity in response to the economic shock arising from the Middle East war suggests firms are taking a strategic, longer-term view rather than getting bogged down in short-termism.”
