UK marketing budgets reached their highest level in more than two years in the third quarter of 2026, with public relations, events and sales promotion leading the growth, according to the latest IPA Bellwether Report.
The report, published on 15 October, found that 25.6% of companies increased their total marketing budgets in Q3, compared with 11.3% that reduced them. This produced a net balance of +14.3%, up from +6.9% in the previous quarter and the highest reading since Q2 2024.
Public relations recorded a net balance of +15.3%, closely followed by events at +15.1% and sales promotion at +13.1%.
Main media advertising also strengthened, reaching a nine-year high with a net balance of +9.8%. Other online advertising rose by 17.2%, while video advertising increased by 9.8%. Out-of-home advertising recorded growth of 3.6%, with audio at 1.1%.
Direct marketing and market research both recorded net balances of +5.2%.
Despite the increase in spending, business confidence remained subdued. Companies’ expectations for their own performance improved from -9.6% to -2.7%, while sentiment towards the wider UK economy remained negative, at -20.3%.
The IPA upgraded its forecast for UK advertising expenditure growth in 2026 to 2.8%, from 2.1% previously. Growth is expected to slow to 1.3% in 2027 before rising to 2.4% in 2028.
IPA director general Paul Bainsfair said the findings were encouraging but warned marketers against relying too heavily on promotional activity at the expense of building long-term brand value.