UK marketing budgets demonstrated modest growth during the third quarter of the year, though market research expenditure continued to decline, according to the latest quarterly industry survey. The findings reveal a complex picture of marketing investment amid ongoing economic challenges.

The research, which surveys approximately three hundred UK-based companies, found that overall marketing budgets grew with a positive balance during the period, though this represented a slight decrease from the previous quarter. Market research budgets specifically experienced contraction, with more companies reducing than increasing their research expenditure.

Forward-looking projections indicated more optimistic sentiment, with market research identified as an area of prospective growth for the upcoming financial year. Within marketing categories, events and direct marketing experienced the strongest budget increases, followed by public relations activities. Main media budgets remained unchanged for a consecutive quarter.

The survey also revealed improved optimism amongst respondents regarding their own companies’ financial prospects, marking the first positive outlook in multiple quarters. However, views on broader industry prospects remained more cautious.

Industry analysts highlighted the challenging UK business climate, including elevated payroll costs, policy uncertainty, and inflationary pressures as factors continuing to influence marketing budget decisions. The research emphasised the relationship between marketing investment scale and business growth, underscoring the ongoing importance of brand-building investment despite economic headwinds.