UK companies revised their marketing budgets up to the highest level in almost two years, despite wider geopolitical turmoil, according to the Q1 2026 IPA Bellwether Report.
The latest survey, which was conducted between 2-24 March 2026, reveals that a net balance of +7.3% of respondents revised their total marketing spend upwards in Q1, with 26.8% of panellists reporting an increase in marketing spend against 19.5% of the survey panel that recorded a reduction. This is up noticeably from a flatline net balance of 0.0% in Q4 2025.
Events emerged as the leading category for greater marketing investment, outperforming all other segments by a significant margin. In Q1, events recorded a net balance of +14.7%, a substantial increase from last quarter’s +1.4%.
Bellwether panellists also ramped up spending on public relations, The respective net balance rose to +6.0% (up from +3.5% in Q4 2025), marking the highest figure in five quarters.
There was also a renewed rise in budgets for main media advertising in Q1, following no change in each of the prior three quarters. The net balance climbed to +4.5%, marking its strongest upward revision since Q3 2023.
Breaking out this main media category revealed that budgets were increased in two of the five tracked categories: other online advertising and video, with both posting a net balance of +5.7%. However, while the net balance for other online advertising fell from the last quarter (+13.2%), the net balance for video marketing spend rebounded from -5.0% in the previous quarter.
Elsewhere, marketing budgets for audio, published brands, and out-of-home marketing continued to decline, with net balances of -3.4%, -8.5%, and -11.3%, respectively. Compared to the previous quarter, audio marketing budgets dropped less sharply (Q4: -10.2%) alongside out-of-home spending (Q4: -17.6%), but budgets for published brands saw a steeper decline (Q4: -6.5%).
Direct marketing and sales promotions both saw expenditure increase over the quarter, with net balances rising from -4.3% to +3.6% and 0.0% to +2.7%, respectively.
Reductions in marketing spend were confined to market research and other marketing expenditure.
Budget plans for the 2026/27 financial year suggest that marketing executives are slightly more optimistic towards spending prospects than initial data indicated, with the net balance revised up from +1.7% in Q4 2025 to +3.0% in the opening quarter of the year. Underlying figures show that around 28.7% of companies expect their marketing budgets to increase over the coming year, more than the 25.6% anticipating reductions.
Commenting on the Q1 2026 IPA Bellwether Report, Paul Bainsfair, Director General, IPA said: “These latest Bellwether results defy wider geopolitical uncertainty and signal a bullish start to the year for UK marketing investment. Looking at the detail, it is pleasing to see that budgets for main media are up. The evidence is being heeded, even in tougher conditions, cutting back on advertising risks long-term damage. It is therefore welcome news that UK companies are holding their nerve and investing to stay front of consumers’ minds, strengthen their brands and drive future growth.”
Maryam Baluch, Economist at S&P Global Market Intelligence and author of the Bellwether Report, commented: “After stagnating at the end of 2025, total marketing budgets returned to growth in Q1, marking a positive start to the year. This rebound occurred despite a surge in price pressures, driven by rising energy costs, which have cast a shadow of caution and concern over the broader economy. Nevertheless, marketing executives have demonstrated resilience, concentrating efforts on revenue-generating sectors and prioritising targeted, client-driven campaigns – including more events – to better position their organisations amid ongoing headwinds and uncertainty.”
