Now in its 25th year, the IPA’s Bellwether Report remains one of the most anticipated indicators of the marketing industry’s health. The previous quarter saw marketing budgets decline for the first time in four years, raising concerns across the sector.
Following a turbulent period marked by geopolitical tensions, economic uncertainty, tax changes, and new marketing regulations, all eyes were on the latest report to see how the industry would respond.
So, what do CIM members need to know? Where should we be allocating our budgets? Which tactics are gaining traction, and which are falling out of favour? Is AI delivering the impact we expected?
10 key takeaways to help guide your decision-making
1. Marketing budgets rebound
After a decline in Q1 2025, UK marketing budgets bounced back in Q2, with a net balance of +5.5% of companies increasing spend—up from -4.8% in the previous quarter.
2. Sales promotions lead growth
Sales promotions saw the strongest growth, rising from +8.0% in Q1 to +9.4% in Q2, reflecting a focus on short-term revenue generation.
3. Direct marketing continues to climb
Direct marketing budgets also increased, with a net balance of +9.1% (up slightly from +9.0%), indicating sustained interest in targeted, measurable campaigns.
4. Events and PR still positive but slowing
Budgets for events and public relations remained positive but saw slower growth territory, though at a slower pace, with net balances of +3.9% and +2.7%, respectively.
5. Main media budgets stabilise
Investment in main media (TV, radio, press, etc.) held steady at 0.0%, a notable improvement from the -6.7% recorded in Q1.
6. Online advertising sees modest growth
Within main media, online advertising grew modestly, with net balance rising from +0.7% to +2.2%. Video marketing remained stable.
7. Traditional media still in decline
Out-of-home, audio, and print media continued to see cuts, though the rate of decline slowed. Out-of-home was the weakest performer at -8.9% (down from -18.9%).
8. Market research budgets shrink again
Market research saw further reductions, with a net balance of -7.0%, though this was less severe than Q1’s -10.5%.
9. Financial outlook improving
Businesses were less pessimistic about their financial prospects compared to Q1, suggesting a cautious return of confidence.
10. Tactical vs. strategic spending
While the rebound is encouraging, much of the increased spend is tactical. The IPA urges marketers to balance short-term activations with long-term brand-building to ensure sustainable growth.
Voices from the front line
To understand how these findings reflect real-world experiences, I spoke with several senior marketers about the report and its implications:
Shakeela (Bijapur) Williamson, FCIM, Senior Vice President (CMO), Marketing – UK Consumer Bank & EMEA International Personal Bank, Citibank UK Ltd, commented: “There’s always pressure to show short-term results but focusing only on immediate performance can hold back future growth. The strongest brands find the right balance between brand building and activation. That balance isn’t static; it should shift based on your audience, proposition, and where you are in your growth journey.”
Allyson Stewart-Allen, FCIM, CEO of International Marketing Partners, believes the latest IPA Bellwether Report findings present CMOs with at least a few dilemmas: “The challenge in today’s tough trading environment with lots of ambiguity around tariffs, geopolitical tensions and economic uncertainty means CMOs need to place big bets on where leading economies are heading over the next 3-5 years. While on the one hand this report shows market research budgets reducing again this year, the desire consumers and clients have for ever more personalisation demands more insights based on good research. Of course, mining your own company’s data helps get you there but will not alone solve that particular puzzle.”
Miranda (Tavares) McLean, FCIM, CMO, Ecommpay, added: “The phrase ‘necessity is the mother of invention’ springs to mind in the current climate. Right now, marketers need to be open-minded, creative and, above all, flexible. They should not neglect brand building strategies, as brand awareness is critical for gaining mental real estate with people who aren’t yet ready to buy and building future demand to drive consideration which will deliver long term sustainable growth.”
“Authentic and relevant content marketing remains critical in retaining brand credibility and trust. Taking an innovative approach to maximise the effectiveness of budgets is vital, carefully balancing brand with sales activation, applying a multichannel strategy, alongside a range of tracking tools to assess impact and pivot where needed.”
Ellie Murphy, FCIM, chair CIM Scotland & Founder, Flourish Marketing felt that: "Marketers are a resilient, creative and determined bunch. While economic uncertainty persists, it’s encouraging to see renewed confidence and investment in insight-led marketing that delivers results. Aligning marketing with broader business goals ensures every pound works harder - connecting with audiences through relevant, tailored messages delivered via personalised channels that turn customers into advocates."
"Data-driven strategies and digital channels remain central, offering both one-to-one engagement and valuable analytics. But brands are now judged on the total experience -online, in-store, on social, their culture and transparency and through every human interaction. Marketing and customer experience are no longer separate disciplines they are now inextricably linked."
Reviewing the results, CIM’s Chief Executive, Chris Daly, urges the industry to look at the bigger picture: “What we’re witnessing is a rebalance, rather than a full rebound. Performance-led channels like direct and digital marketing remain robust, but there’s also renewed interest in channels that build brand equity over time – especially with video.”
“Marketers are recognising that sustainable growth hinges on consistency, creativity, and connection – factors which are amplified when data, purpose, and technology work together. As the macro picture gradually improves, marketers who maintain a clear vision and a steady hand will lead the charge into recovery.”
Final thoughts
The latest Bellwether Report offers a cautiously optimistic outlook for marketers. While tactical spending is on the rise, long-term success still depends on building strong, recognisable brands.
As a sector, we’re seeing a clear shift towards more personalised, data-driven marketing. To stand out, marketers must move with the times, prioritise creative quality, and remain mindful of evolving legislation. For CIM members, the message is clear: stay agile, stay balanced, and keep your eyes on both short-term performance and long-term brand health.
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