UK companies revised their marketing budgets upward to the highest level in almost two years during the first quarter of 2026, according to the Q1 IPA Bellwether Report published on 16 April. The survey, conducted between 2 and 24 March 2026 across around 300 senior marketing decision-makers from the UK’s top 1,000 companies, recorded a net balance of +7.3% of respondents increasing total marketing spend, a marked recovery from the flatline net balance of 0.0% reported in Q4 2025.
Events emerged as the standout growth category, recording a net balance of +14.7%, a substantial jump from +1.4% in the previous quarter. Public relations extended its growth streak with a net balance of +6.0%, its highest figure in five quarters. Main media advertising returned to growth after three consecutive quarters of stagnation, posting a net balance of +4.5%, its strongest reading since Q3 2023, driven by rebounds in video and sustained strength in online channels. Within video and other online advertising, both sub-categories posted net balances of +5.7%.
The rebound came despite a challenging macroeconomic backdrop. UK GDP growth forecasts were revised down at the end of Q1, with S&P Global Market Intelligence projecting expansion of just 0.5% for the full year, lower than the 0.8% anticipated previously, partly due to ongoing geopolitical pressures. Despite this, the adspend outlook strengthened independently. S&P Global’s latest forecast upgraded 2026 UK adspend growth to 2.5%, up from a prior estimate of 1.5%, with further momentum expected in 2027 (2.7%) and 2028 (2.9%).
IPA Director General Paul Bainsfair described the results as defying “wider geopolitical uncertainty” and signalling “a bullish start to the year for UK marketing investment.” He emphasised that even in tougher conditions, cutting advertising will risk long-term damage to brand equity. S&P Global economist Maryam Baluch, author of the report, noted that marketers were demonstrating resilience by concentrating efforts on revenue-generating sectors and prioritising client-driven campaigns. Areas of continued contraction included market research, out-of-home, published brands and audio budgets.
