Interviews, insight & analysis on digital media & marketing

IPA Bellwether report Q1 ‘26: industry reaction – part two

New Digital Age’s round-up of reaction to the latest IPA Bellwether report continues…

Tilman Harmeling, Senior Privacy Expert, Usercentrics:

‘The latest Bellwether findings reflect a positive shift in marketing sentiment, with brands returning to growth after a subdued end to 2025 and showing a clear willingness to invest despite ongoing economic uncertainty. The uplift across key channels, particularly digital, signals a continued focus on reaching and engaging audiences in more dynamic and measurable ways.

‘As investment increases, the quality of those interactions will become increasingly important. Consumers today are more aware that digital experiences are built on a value exchange, but many still lack clarity around how their data is used. In fact, 77% say they do not fully understand how their data is being collected and used, according to our research with MIT Technology Review Insights.

‘This creates a clear opportunity for brands to differentiate. Those that prioritise transparency and build more user-centric data experiences alongside their marketing strategies will be better placed to strengthen engagement and drive more sustainable growth as the market continues to recover.”

Bryan Scott, Chief Marketing Officer, Ozone:

“The latest Bellwether data points to a notable uplift in marketing investment, particularly given the continued geopolitical and economic pressures facing businesses. Rather than pulling back, many marketers appear to have adjusted to operating in a more volatile environment, where uncertainty is increasingly factored into long-term planning rather than seen as a barrier to investment.

“This is reflected more broadly across the industry. ISBA’s 2026 Media Budgets Survey shows that 65% of UK marketers are planning to increase media spend, with a greater emphasis on brand advertising over performance. This suggests a renewed focus on building long-term brand value, and an understanding that maintaining visibility through uncertain periods is critical to future growth.

“Looking ahead, forecasts remain encouraging. Both the Bellwether report and AA/WARC projections indicate continued expansion in adspend, with the latter expecting the UK market to surpass £50bn in 2026. Moments of cultural significance, such as this summer’s World Cup, will provide valuable opportunities for advertisers to connect with audiences at scale as investment in brand-building continues to strengthen.”

Elie Kauffmann, head of sales for EMEA, Audion: 

“In light of ongoing geopolitical uncertainty, the rebound in marketing budgets this quarter suggests a clear focus on measurable impact and business outcomes. And as advertisers look to maximise efficiency and justify every pound spent, they need formats that can deliver both brand equity and performance.

“While the Bellwether report highlights mixed trends across media, we see digital audio continue to stand out as a high-performing, results-driven channel. Brands increasingly turn to it not only for its ability to build awareness, but to drive tangible outcomes across the full funnel, from consideration through to conversion; a combination of precision targeting, scalability and strong engagement, enables advertisers to deliver campaigns that are both impactful and accountable.  

“In short, audio has evolved into a reliable lever for delivering measurable ROI as well as long-term value – factors that work in its favour as marketers balance caution with the need for growth.”

Amadi Tagoe, Senior Vice President, MikeWorldWide UK: 

“The rebound in PR investment reflects a broader shift in how brands are thinking about growth. At a time when trust is hard won and audiences are more fragmented than ever, reputation is shaped by what people experience and what they believe about a brand, not what the brand says about itself. That cannot be built in silos. It is shaped across PR, events and wider communications, and is increasingly shaped beyond the brand’s direct control. 

“Even against a backdrop of economic pressure and geopolitical instability, continued investment signals a clear intent to show up with more credibility and clarity.

“What is especially telling is where that investment is going. The continued rise in events alongside PR points to a clear shift. Brands are having to think much harder about where they have permission to show up and what they actually add to culture. However, too many are still defaulting to volume over value. This is not about doing more; it is about doing it better. 

“For PR, this is a moment to lead, connecting brand storytelling with immersive experiences in a way that reflects how people engage today, building trust and showing up authentically in the moments and spaces that matter.”

Jodie Gillary, head of brand activation at Kantar UK: 

“The leap in marketing budgets is positive, albeit surprising news given the social, political, and economic backdrop. With household spending set to be knocked again by rising costs, businesses will have to work even harder to earn their share of consumers’ wallets so the ROI from those bigger budgets will be under scrutiny.

“Brand continues to be the competitive advantage that business can’t do without. It’s what protects prices and fuels future growth. It sounds obvious but more brands are putting profits at risk than you might think – our research shows that nearly half of the UK’s most valuable brands aren’t seen positively enough to justify charging a higher-than-average price for their category.

“It’s certainly not an easy time to be a marketer as teams grapple with ever more touchpoints fighting for increased budget, especially with our research showing that over a third of people now turn to AI to discover new brands. Using the right intelligence to guide marketing investment towards building strong brands, securing the bottom line and unlocking growth is what will make the difference between success and failure over the long term.”

Jaye Cowle, CEO & Founder at Launch:

“The Q1 Bellwether numbers are a welcome sign but if you’re working in performance marketing right now, you’ll know the market feels more cautious than +7.3% suggests.

“What we’re seeing across our client base is a real shift in how people are shopping. The US/Iran conflict, rising fuel prices and the daily unpredictability of US trade policy have knocked consumer confidence. Research from The British Retail Consortium in March found that 64% of UK adults expect the economy to get worse over the next three months. That kind of sentiment changes buying behaviour, even before it hits people’s pockets, and we’re seeing it in the data.

“We’re seeing the path to purchase getting longer, shoppers are looking for reassurance, comparing more, reading more reviews and pulling back on impulse buys. Basket sizes are feeling the squeeze too with average order values showing a decline.

“For marketers, the instinct is to double down on conversion to drive revenue but when the buying journey stretches, that only addresses part of the problem. Mid-funnel activity – building consideration and trust over a longer period – deserves real attention right now.

“Messaging also matters more in this climate with a focus on value, quality, social proof and making the purchase journey as easy as possible. Reviews, clear returns policies and transparent delivery costs all reduce the hesitation that’s costing conversions.

“Keep experimenting too! It helps reduce risk by testing creative and messaging at every stage, as long as you have proper measurement behind it.

“The most important piece of advice we’d give any marketer right now: don’t retract, respond. Consumer demand hasn’t disappeared, it’s just become more cautious. The brands that stay visible and stay calm will be the ones best placed to grow when confidence returns.”

Simon Thorne, Managing Director EMEA at Innovid:

“In many ways, the latest IPA Bellwether report reflects the reality marketers are navigating today. With +7.3% uplift in budgets, the strongest in nearly two years, it’s a strong signal that confidence is returning, even if cautiously. What this ultimately points to is a more considered and strategic approach to investment. Advertising has never been a switch to turn on and off. It’s a long-term driver of growth. The brands that continue to invest, while refining how and where they show up, will be best placed to build resilience and unlock future opportunity. 

“Increasingly, that means embracing a more connected, omnichannel approach, underpinned by data and technology. In a landscape like this, and to ensure every channel is working harder together, it’s not just about proving ROI in the moment, but about building a foundation for sustained growth over time.” 

Chris Daly, CEO of the Chartered Institute of Marketing: 

“Global uncertainty is the new baseline, but lower inflation has successfully removed that layer of ‘panic’ from consumer decision-making. We are still operating in a fragile environment, but we’re no longer seeing the knee-jerk behaviours that characterised the last twelve months. The increase in marketing spend detailed in the report reflects a cautious but tangible improvement in business confidence in the UK, rather than a full return to previous norms.

“While budgets continue to be managed carefully, there is a growing willingness among some organisations to look beyond immediate returns and place greater emphasis on long-term brand building and strategic capability.

“Performance-led activity, such as paid adverts and search, continues to play an important role, offering clear accountability through precise targeting and measurable outcomes. However, it is the integration of these short-term tactics with more forward-looking activity – including creative brand campaigns, PR, thought leadership and fostering strong connections with customers – is what will truly drive growth and ensure brands stand out from the crowd.

“As confidence gradually returns, marketers who take a joined-up approach, balancing near-term performance with long-term objectives, will be best positioned to drive lasting value. To support this shift, organisations will also need to continue investing in skills and capability development within their marketing teams, helping ensure that marketing investment delivers not only immediate impact, but more sustainable growth over time.”

Sarah Logan, Head of Agency Partnerships, EMEA at Intuit Mailchimp:

“Having spent the last few quarters discussing ‘how to do more with less’, marketers will be pleased to see that budgets have been revised up in Q1, something that many will be hoping marks a new upwards trend. A reason behind the upward trend could be that the market has stabilised after the uncertainty of global tariffs as well as the autumn statement, which led to caution in Q4.

“However, spending these additional budgets requires clear strategic planning. Although sales promotions saw spend increase over the quarter, marketers must resist the urge to simply increase promotional output as budgets increase. Intuit Mailchimp research shows consumers are experiencing massive discount fatigue; 39% are overwhelmed by the number of sales and 25% actively avoid big retail events.

“To maximise these budget increases, marketers should instead focus on brand accountability. According to Mailchimp data, 40% of UK consumers do not trust brands with their personal data and 55% unsubscribe due to irrelevant content. It is clear they expect clarity, control and value from the very first interaction – and relevance is the currency required. This must be marketers’ focus for the quarters ahead in order to gain maximum ROI from expanded budgets. Encouragingly, 50% of UK marketers are prioritising more relevant or personalised incentives to further drive opt-ins.

“AI will also prove to be a valuable tool in helping these budget increases go further by streamlining available customer data and insights, and making recommendations on the most efficient and effective next steps based on the results.

“This optimistic start to 2026, and increased budget revisions for 2027,  will provide marketers with a much-needed boost, but a considered long-term brand-building approach is still needed to build consumer trust and allow for continued industry growth.”

Alfie Atkinson, CEO, MiQ: 

“The rebound in marketing budgets signals a clear shift, with businesses increasingly looking to marketing to drive growth through ongoing macro-economic uncertainty.

“What’s notable from the report is how brands are responding. Rather than pulling back, they’re leaning into smarter and more connected ways of working. Teams aren’t focusing on short-term performance spikes any longer. The most progressive marketers are building brands and strengthening real customer relationships, without compromising on the expectation that every pound spent should deliver a measurable impact.

“That shift is accelerating the move towards true omnichannel strategies. At MiQ, we’re seeing brands prioritise a unified view of how people are watching, browsing and buying. Environments like CTV, online video and YouTube are all being viewed in one connected system rather than in separate silos – a unified approach which is driving more predictable outcomes. Crucially, it’s the combination of that connected view with the expertise of our teams that allows brands to interpret these signals properly and act on them with confidence. 

“As adspend forecasts continue to improve over the next three years, the advantage will sit with brands that can consistently turn connectivity into clarity – understanding real audience behaviour and proving the impact of every investment. Those that can’t will struggle to translate renewed budgets into real growth.”

Jessica Michen, Co-Founder and COO, Grasp:  

“The Q1 2026 IPA Bellwether Report points to a return to growth, with UK marketing budgets up +7.3%. Yet wider industry confidence remains at -21.0%, highlighting a disconnect between increased investment and reduced certainty. 

“That gap reflects a broader structural issue. As campaigns scale across platforms, markets and partners, complexity increases – often faster than the controls needed to manage it. While more campaign data is available than ever, much of it is still created through manual inputs and inconsistent processes at the point of setup, making it difficult to rely on.

“Moments like the 2026 FIFA World Cup bring this into sharp focus. With billions invested globally, even small inconsistencies in campaign naming and structure can fragment performance data. Grasp’s analysis suggests up to $3.9bn of activity could run on compromised data, raising a fundamental question about how much marketing performance is built on incomplete or unreliable inputs.

“In this environment, success won’t come from spend alone, but from the ability to standardise and control data at the source – creating a consistent, trusted foundation for measurement and decision-making.”

Paul Samuels, President – Global Partnerships at AEG International: 

“As the digital landscape becomes increasingly crowded and overwhelming for consumers, brands are understandably turning to alternative strategies to cut-through the noise. AI continues to cut out the middle man when it comes to product discovery, brand equity is becoming more important for stimulating consumer preference – and there is a limit to how far the fleeting interactions of traditional advertising can go in developing understanding.

“The desire to build lasting, meaningful relationships with consumers is one of the primary factors underpinning the consistent increase in events budgets over the past few years. Brands’ appetite for events is reflected by growing competition in the partnership market, with live entertainment in particular providing a prime opportunity for them to share their identities and build trust with audiences when they are already highly engaged and attentive.

“The less transactional nature of events is part of the appeal, with brands afforded more time to engage with audiences as part of a two-way conversation. Taking festival activations as an example, average dwell time can be over 20 minutes when brands get it right, giving them invaluable moments to show fans what they stand for, find common ground and build a rapport in a memorable environment.”

Daniel Todaro, CEO at Gekko Group:

“Sales promotions often benefit from the ‘use it or lose it’ mindset that emerges as brands head towards the end of their financial years – and we see this reflected in Q1’s upward revisions. As well as being quicker and easier to activate than campaigns across other marketing channels, and promotions also offer a way to hit end of year targets and clear excess stock.

“This year, brands have also faced the challenge of low consumer confidence and restricted spending against a backdrop of geopolitical uncertainty. At times like this, brands often lean on sales promotions as a way to retain customers as they compete for a larger piece of a small pie. Economic challenges also underpin lower spending intentions throughout 2026/27, as promotions actively undermine efforts to increase average selling prices, whilst running the risk of devaluing the brand through persistent discounting.

“As sales promotions take a back seat, events continue to flourish as marketers focus on building brand equity. Creating experiences that resonate with consumers – particularly Gen Z – and make them feel valued is increasingly seen as the best way to foster loyalty, trust and long-term advocacy – showing the focus on long-term investment over short-term gain.”

Sam Fellows, Managing Partner at Gain Theory: 

“The increased spending on Events and Public Relations (PR) is consistent with what we’re seeing. Brands recognise the opportunity that experiential marketing and event sponsorship provide to increase differentiation and to reach, engage, and cultivate younger audiences. At the same time, they’re increasingly focused on measuring the effectiveness of these activities, generating insights, and enhancing activations to drive commercial value.”

Jenny Herbison, SVP of Global Marketing at Exclaimer: 

“The Bellwether findings point to a disciplined kind of marketing recovery. What’s returning isn’t indiscriminate spend, but investment in digital and direct channels that demonstrate value, whether through stronger targeting or more measurable routes to engagement. With wider confidence still fragile, that makes sense. Marketers are under pressure to prove contribution, not just presence.

“What feels more new is the context those channels now operate in. As AI search and generative discovery reshape how people research brands, visibility goes beyond paid reach and organic ranking. It is about whether your brand is showing up consistently, credibly and in a form machines can understand and surface. That shifts digital marketing towards building enough trust and coherence across your digital footprint to be recommended before the click.

“For brands, that makes owned channels more valuable, not less. Every customer email, sales follow-up and service interaction becomes part of the wider picture of brand discoverability. In that environment, the opportunity is to make the channels you already own work harder: reinforcing brand and contributing to the trusted signals that shape both human and AI-led decisions.”

Gregg Turner, Performance Director at Engage: 

“The latest IPA Bellwether report signals a notable shift in market sentiment. With budgets rebounding strongly, the spend uplift shows businesses are regaining confidence and recognising the importance of sustained brand investment. 

“What stands out is that while individual companies are feeling more optimistic, the wider marketing industry is still taking a performance-driven approach to spend. Marketers are becoming increasingly strategic, balancing short-term returns with long-term brand equity. 

“Organisations continuing to invest in high-impact, audience-centric channels will be well placed to maximise return on investment and unlock growth opportunities through integrated approaches. However, it’s imperative that brands continue to prioritise the channels that deliver the greatest impact, align media, creative and targeting strategies alongside relevant, audience-first messaging.”

Rob Ishag, UK Country Manager at TripleLift:

“It is encouraging to see such strong investment across various marketing areas, as we kick off a landmark year. However, with the World Cup and other major cultural moments dominating the 2026 calendar, we are entering an incredibly saturated landscape. While the uptick in spend is a positive signal, we must recognise that earning consumer attention is only half the battle. In the current climate, attention alone is no longer enough. With every penny under scrutiny, the gap between media delivery and actual business impact is widening.

To sustain this upward momentum, marketers must move beyond simple optimisation and focus on engineering impact. This requires a three-way approach: investing in creative that genuinely earns attention, leveraging intelligence to guide precise decision-making, and ensuring orchestration that drives tangible outcomes. As performance expectations rise, the brands that win in 2026 will be those that prioritise meaningful impact over mere presence.”