In the final part of NDA’s round-up of reaction to the latest quarterly IPA Bellwether report, leading figures from across the ad tech, agency and digital media industries share their thoughts…
Will Frappell, Chief Growth Officer, Charlie Oscar
The rebound in UK marketing budgets is a welcome signal that businesses are shaking off some of the caution that’s defined the past 18 months. But behind the headline growth lies a continued tilt toward short-term, tactical activity. Brands making the most of their spend right now are those prioritising effectiveness. Not just efficiency or reach, but real impact. That means balancing performance with brand and investing in knowing what’s working. Accountability in marketing is no longer optional.
While many holding companies continue to struggle under the weight of outdated operating models, independents are proving better suited to these market conditions. Clients are under pressure to deliver more with less, with smarter, more adaptive, and insight-driven strategies. The mood may still be cautious, but we remain optimistic. For advertisers willing to put marketing effectiveness at the heart of their strategy, this is a moment of real opportunity.
Dan Brink, Head of Data, UniLED Software
It’s encouraging to see an uptick in marketing budgets in Q2, but as always the devil’s in the details. The report may show less industry pessimism but the increase in spend on short term, more tactical activations is evidence marketers are continuing to make risk-adverse media investment decisions. Short-termism is not a sustainable business growth strategy and should be balanced with long-term brand building.
In H2 2025 it is vital that agencies and advertisers not only have a razor-sharp focus on measurement. But perhaps more importantly have access to accurate third-party data that can be used to verify the precision of ad campaign delivery, both short and long term. Only then can future media planning be optimised to include the media channels – such as DOOH – that unlock ad effectiveness by gaining high-levels of attention and audience connection, and help to avoid ad spend wastage.
Dean Nagib, UK country manager, Azerion
After a challenging Q1, it’s reassuring to see confidence returning to the market with budgets rebounding in Q2. The growth in sales promotion and direct marketing highlights a clear focus on short-term performance, which makes sense given the economic climate.
But as long-standing research has shown, brands that balance immediate activation with long-term brand building tend to outperform over time. The real challenge now is maintaining that balance, ensuring today’s marketing efforts drive both quick wins and lasting impact.
With investment returning, marketers are doubling down on smart, flexible strategies – blending data, creative, and cross-channel planning to deliver now and build for the future.
Rachel Lofthouse, Managing Director for UK & Europe, Fox Agency
There is no doubt that financial caution remains high, with marketing teams under pressure to prove their direct contribution to growth. Yet, the short-term need to manage risk and internal pessimism is mixed with long-term optimism.
With B2B buyers doing significantly more research before they even engage with a brand, let alone purchase from, we’re seeing brands increasingly invest in hyper-personalisation. Many are using AI to not only process vast amounts of data and track competitors, but to spot unmet or emerging customer needs at scale and speed.
The ability to create differentiation at scale is vital, particularly in growth industries such as Industry 4.0, SaaS and Automotive, all of which rely on complex solutions. Marketing must play a role in simplifying those complexities, being present earlier to give buyers something helpful that is right for them. These industries also face the fiercest competition, so spend must be focused on grabbing buyers’ attention through thought leadership and a clear direction of ROI.
Most importantly, marketing efforts should not stop after a customer buys. Instead, they must leverage personalisation to ensure customers get the most from a product or service, which in turn will drive retention and opportunities for upsell. It is also a powerful way to build customer testimonials, which are ever more important as the truth of information is heavily scrutinised and authentic advocacy is the panacea.
Sam Panzer, Director of Industry Strategy, Talon.One
While the latest IPA bellwether report shows boosted confidence, marketers must be wary of investing too much in sales promotions that rely heavily on slashing prices indiscriminately. Blanket discounting is a knee jerk reaction – while it might drive a short-term sales boost, it ultimately erodes margins and conditions customers to wait until the next sale.
As trading uncertainty persists, brands need to move away from blanket discounting and focus on delivering personalized incentives proven to drive profitability and customer loyalty. The ROI of this approach is tangible – our recent research found that 94% of organisations who personalize discounts say they have experienced benefits, with 62% saying they have increased sales, and 60% saying they have improved customer loyalty.
Simon Thorne, Managing Director, EMEA, Innovid
An uptick in budgets reflects a welcome return of confidence, and recognition that advertising is essential to growth, even in uncertain times.
At Innovid, we’re seeing this optimism translate into smarter investments, particularly across digital-first channels like CTV and social, where marketers are moving beyond impressions to focus on outcomes.
From dynamic creative to campaign optimization, it’s the combination of advanced tools and AI that’s helping brands personalise at scale, respond faster, and maximise performance. The goal isn’t just to spend more – it’s to spend with precision, turning every pound into a performance driver.
Paul Samuels, President – Global Partnerships, AEG International
Increasing spend and upwards revisions to marketing budgets are welcome signs of a recovery in a challenging time for the industry. The focus on direct marketing and sales promotions points to the pressure on brands to drive sales in an era of low consumer and business confidence, but it is important that spend in these areas delivers on long-term gains rather than quick wins.
Budgets for events have continued to increase over the past three and a half years, which is testament to the role they can play in helping brands achieve strategic objectives – whether those are acquisition, retention, reward or long-term brand building. The versatility of live events partnerships is where brands are seeing value, particularly when part of sustained, integrated campaigns.
In line with the broader appetite for direct marketing, there is increasing demand for targeted data-driven digital campaigns that support and enhance in-person activations. Using their owned channels, our platforms and social advertising, brands are targeting niche, highly engaged audiences before, during and after some of the most memorable days of their lives. The increased awareness, presence and engagement only improves the experience of fans and impact for brands.
Daniel Todaro, CEO at Gekko
Upwards revisions in sales promotions and direct marketing point to how brands are approaching greater consumer choice in the face of lower consumer confidence and intentionally curbed spending.
In a retail context, the challenge is how to remain relevant and compete against the increasing number of brands and products entering the market across in-store, online and on social media channels. Direct marketing has proven to be an effective way to gain consumers’ attention in the past, but the sheer volume of brands fighting for the same spaces is pushing up CPA, bringing the ultimate value into question. In this market, brands must curate the clutter and create strategic friction to increase consideration and make the increased spend worthwhile.
While it is important to avoid devaluing the brand in terms of quality and sustainability through a race to the bottom on price, offers and promotions can also be an effective way to drive a short-term increase in sales. However, brands cannot afford to focus solely on immediate gains at the expense of their long-term sales, marketing strategies, and profitability. Both direct marketing and sales promotions should be deployed as part of wider brand building campaigns and go to market plans that speak to a brand’s target audience. Merchandising and customer experience will also be critical for generating long-term loyalty and creating category leaders.
Dom Boyd, managing director of insights, Kantar UK
CMOs have clearly been fighting hard in the boardroom to make the case for resilient marketing spend, but we should be careful about looking at these figures as an outright victory. The weighting towards direct marketing and promotions is a big red flag – short-term tactics can be useful for a quick boost to sales, but they won’t generate sustainable growth on their own.
Today’s fragmented media and consumer landscape means that growing big relies on investing in lots of ‘littles’. Rather than putting eggs in one basket, it’s about making incremental gains through different but connected devices and channels – with the brand as the glue holding everything together. When it comes to media strategies, for example, our data shows that campaigns with five or more channels can deliver up to three times the impact on awareness and purchase intent versus those with only two. If brands want to really break through the consumer attention ceiling, they’ll need to carve varied routes in – and make sure all those ‘littles’ add up to being a present and relevant part of people’s lives.
Andreas Ohlbach, Head of Client Services, Transmission
Being from a creative video production agency, it’s encouraging to see that video advertising is holding steady, even as other broadcast channels face challenges. Industry research shows us that TV and BVOD remain the most effective advertising channels, and our clients continue to invest in quality video for broadcast as it outstanding drives results. Paired with the growing opportunities for advertising in SVOD, I’m confident that video will stay central to media strategies as it can deliver on both fronts – short term sales activation and long-term brand building. As an agency, we’re excited to introduce a selection of brands to TV for the first time to supporting their growth ambitions.
Adnaan Patel, Marketing, Communications & Growth Lead, Deloitte Digital
The Q2 2025 IPA Bellwether Report reveals a significant rebound in UK marketing budgets, defying initial economic headwinds. Deloitte Digital welcomes this positive trend, particularly as this data underscores the crucial role of agile marketing, data-driven strategies in navigating economic uncertainty. We see our clients looking to invest strategically, leveraging digital channels and targeted approaches to balance the greatest returns now and next.
Lauren Maynard, Chief Growth Officer, FutureBrand
After a sharp marketing spend contraction in Q1, the return to growth this quarter, even amid ongoing geopolitical turmoil, suggests brands are beginning to accept uncertainty as the new normal and are gradually reactivating investment. Confidence clearly remains fragile, with much of that spend still directed at short-term tactics like sales promotions and direct marketing.
It’s understandable that marketers are approaching long-term brand investment cautiously, balancing rising costs with pressure to show immediate results. However, a decade of data from the FutureBrand Index shows that brands that continue to invest in long-term purpose and perception are the ones that weather disruption and emerge strongest.
Take Nike as an example: while it beat Q4 earnings forecasts, the brand remains under pressure as it faces the challenge of absorbing a $1 billion tariff hit. As it navigates this uncertainty, it has the chance to draw on its deep cultural capital and global resonance, strengths that underpin its strong performance in the FutureBrand Index, where two-thirds of consumers say they would continue to support brands they admire during times of financial turbulence.
If it leans into its brand now, rather than chasing short-term gains, Nike stands every chance of emerging stronger as it manages supply chain disruption. This is exactly the kind of long-term strategy other brands and marketers should be watching closely.
When budgets begin to ease, as many expect in 2026, the brands that invested in long-term brand building will be the ones that remain both relevant and resilient, and already out in front.
