UK companies have increased their marketing budgets to the highest level in almost two years, according to a new IPA Bellwether Report, suggesting some renewed confidence, despite ongoing geopolitical and economic uncertainty.
A net balance of +7.3% of firms reported higher marketing spend in Q1 2026, an increase from a flat reading in the previous quarter. This marks a rebound in investment as brands focus on growth and improving customer engagement.
The strongest-performing category was events, which achieved a net balance of +14.7%, while public relations and main media advertising recorded net balances of +6.0% and +4.5% respectively. However, budgets for audio, out-of-home and published brands continued their decline, and wider industry confidence remains subdued.
Looking ahead, marketers were cautiously optimistic. With a net balance of +3.0%, budgets for the 2026/27 financial year are expected to increase slightly, which will be complemented by a modest improvement in company-level sentiment.
Commenting on these findings, Paul Bainsfair, director general at the 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.”
Maryam Baluch, economist at S&P Global Market Intelligence and author of the Bellwether Report, echoed this sentiment, pointing to the fact that the rebound occurred “despite a surge in price pressures, driven by rising energy costs.”
“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,” she added.
This research was published soon after UK GDP forecasts were downgraded to 0.5% for 2026. On a more positive note, advertising spend is continuing to grow, with projections revised up to 2.5% for the year.