Frozen out: Why marketing budgets have been put on pause

The latest IPA Bellwether Report shows that growth marketing budgets have lurched to a halt after 14 straight months of games. Despite a decisive election win, the uncertainty and economic concerns ahead of October’s Autumn Budget, have caused business leaders to hit pause.

The findings show an absolute balance between the number of companies in the UK increasing their budgets (21.6%) and those that decreased them (also 21.6%). To put that into perspective, in the previous quarter there was a 15.9 percentage point difference in favour of the spenders. The positive trend had stretched back 13 quarters at an average of +8.8%. It appears clear that while pre-election uncertainty was brought to an end with a resounding majority for Labour, it’s clear that mixed messages on the economy and taxes are continuing to weigh on business leaders’ financial decisions.

But, it’s not all doom and gloom for the industry. While out of home advertising was the biggest faller this quarter, we've observed growth in areas like public relations and direct marketing, as businesses focus on influencing regulation and driving short-term sales.

Looking ahead to Christmas, here at CIM we’re optimistic that investment in long-term brand building will rebound. In fact, the modest growth in main media advertising was driven by big-ticket video campaigns, which rose to their highest since Q4 of 2022.

One thing that will stay the same no matter how the market is looking is that marketers with professional qualifications will be best positioned to navigate the dynamic conditions.

About CIM
For over 100 years, CIM has supported the marketing sector. With members in more than 100 countries, CIM strives for business leaders and opinion formers to recognise the positive contribution professional marketing can bring to their organisations, the economy and wider society. We support, develop and represent marketers, organisations and the profession all over the world. Our ability to award Chartered Marketer status recognises a marketer’s commitment to staying current and abiding by a professional Code of Conduct. While our diverse range of training courses and world-renowned qualifications enable modern marketers to thrive in their roles and deliver long-term success for businesses. Find out more about CIM by visiting www.cim.co.uk.