IPA Bellwether Q3 2026: Further industry insight

Today’s IPA Bellwether release has continued to make waves across the industry, prompted by the welcome news that UK companies have revised their marketing budgets upwards at the strongest rate in more than two years.

In part two of our industry reactions round-up, New Digital Age gets more thoughts from experts across the advertising and marketing industries on what the report’s findings really herald…

“It couldn’t come at a better time”: Jaye Cowle, CEO & founder at Launch

“It’s certainly encouraging to see the strongest upward revision to marketing budgets in nine quarters, and it couldn’t come at a better time. These positive signals lay the foundation for success in the Golden Quarter (Q4), when spend from so many e-commerce brands reaches its highest levels. With an extra day between Black Friday and New Year, and three full weekends between Black Friday and Christmas, combined with positive growth news, we’re hopeful that consumer confidence will recover enough to mean another bumper sales period.

Early preparation in Q3 remains crucial, especially as consumers have more choice, brands are making more noise across more channels, and competition for attention is at an all-time high. Then there’s AI search. According to YouGov, 34% of shoppers plan to use AI tools this year, almost double last year. It will be interesting to see how AI search affects the consumer journey this Q4, and how brands’ GEO strategies fare. I am certain there will be some key learnings as we move into 2027.”

“For the first time, all five main media channels are growing at once”: Rong Chen, Managing Director of Content Amplification at OLIVER

“The most telling signal in this Bellwether isn’t just that budgets are up, but where the money is going. For the first time, all five main media channels are growing at once, alongside PR, events and promotion. The sharp rise in sales promotion reflects the pressure on businesses to deliver results now, but short-term activation can’t come at the expense of long-term brand building. The good news is that marketers increasingly don’t have to choose between the two.

“The challenge is no longer simply finding budget; it’s making that investment work across more channels, formats and markets without sacrificing consistency or speed. AI and data-powered content production can help brands turn one strong idea into thousands of locally relevant assets. That frees up budget and creative energy for enduring brand-building work, meaning activation at scale and long-term growth no longer have to be competing priorities.”

“It’s encouraging to see confidence returning to OOH”: Dan Brink, client services director at UniLED

“It’s encouraging to see confidence returning to OOH, which is being reflected in advertisers’ budget plans. However, despite the strongest upward revision to total spend in nine quarters, outcomes remain under close scrutiny. The more clearly we show how OOH contributes to advertisers’ wider objectives, the stronger the case for continued investment.

“OOH continues to play an invaluable role in the wider media mix by reaching audiences in the real world, building brand presence and strengthening campaigns alongside other channels. The opportunity now is to build on this momentum by improving how we demonstrate effectiveness and giving advertisers the evidence they need to understand the full value of their investment.

“Continued progress in transparency, accountability and measurement will strengthen the case for OOH, and hopefully increase budget flow to this hard-working channel.”

“A few little letters with big consequences sum up this quarter”: Jodie Gillary, Head of Brand Intelligence at Kantar

“For me, a few little letters with big consequences sum up this quarter: LLMs. Marketers are having to work harder than ever to sell not just to humans, but to the bots too. AI search is clearly at the front of CMOs’ minds, so the rising spend on PR and events – channels which create the online footprint and buzz which LLMs draw on when making recommendations – comes as no surprise.

“But the principles of getting noticed and driving growth remain the same: brands have to stand out and they have to give real people a reason to care. Our latest research into the UK’s most valuable brands found that those which significantly strengthened their meaning and relevance for consumers grew their value by a huge 140% over the past six years. This relies on brands truly understanding their customers’ needs and motivations and channelling that intelligence into campaigns, products and services which really fit with their lives.

“Increasing spend is only half the battle – if it’s not clear why the brand is relevant, LLMs simply won’t clock it and won’t suggest it, and that’s sales left on the table.”

“We need to challenge what we’re measuring as marketing success”: Ella Kersey, Growth Director at Brandwidth

“Marketing budgets are recovering, but I think we need to challenge what we’re actually measuring as marketing success.

“The latest IPA Bellwether Report shows strong growth in PR and events alongside a surge in sales promotions. To me, that highlights the tension between building long-term brand value and delivering immediate commercial results.

“AI makes this even more interesting. As targeting, bidding and optimisation become increasingly automated, simply being more efficient isn’t much of a competitive advantage when everyone has access to similar technology. And as consumers encounter more AI-generated content and automated interactions, I’d argue that trust, credibility and genuine human connection will become even more valuable.

“But that trust needs to extend beyond the marketing itself. We can optimise campaigns to deliver cheaper acquisitions and higher conversion rates, but if the product doesn’t meet expectations, the experience disappoints or customers don’t return, what have we really achieved?

“For me, the next evolution of marketing effectiveness isn’t about acquiring customers more efficiently. It’s about understanding whether we’re attracting the right customers and creating enough value to keep them.”

“A defining tension for brands”: Mike Craddock, Co-Founder & CEO at NewGen

“The IPA Bellwether findings highlight a defining tension for brands. AI presents significant opportunities to deepen consumer engagement, but also raises new questions around trust and the future of work.

“Against a backdrop of geopolitical uncertainty and growing concerns around job security, the rapid rise of AI-generated content is blurring the lines between fact and fiction. Building credibility and establishing meaningful connections with audiences is therefore becoming increasingly valuable.

“Brands should invest in long-term creator and influencer partnerships that build trust through consistent, authentic voices. AI can then help scale these efforts, enabling brands to deliver more relevant engagement across audiences while strengthening their positioning.

“Brands must also tread carefully when using AI creatively. While the technology can unlock new creative possibilities, its application should remain rooted in a brand’s purpose and core values.

“Ultimately, balancing innovation with authenticity will be essential as brands navigate the opportunities and risks AI presents.”

A very encouraging upward trend: Kamel El Hadef, Co-Founder at Audion

“Having stabilised in Q2, the upward trend of marketing budgets in the latest Bellwether is very encouraging. It’s also testament to the marketers that continue to produce great creatives and maximise their targeting capabilities. However, despite the refresh in the UK, these are still challenging times, illustrated by the muted feedback on the financial prospects of both the industry and companies themselves.

“Our message remains consistent. We see audio advertising continue to deliver across the full marketing funnel, its unique attributes enabling brands to engage with consumers throughout every aspect of their daily lives. We are also extending the channel to include the performance space, as its measurement capacity evolves to allow advertisers to make direct connections between budget spend and real-life results.”