UK Marketing Budgets Post Fastest Growth in Nearly Two Years
UK marketing budgets rebounded in Q1 2026 after stagnating at the end of last year, with more companies reporting increases than at any point in nearly two years, according to the IPA Bellwether Report produced by S&P Global Market Intelligence. The growth was driven by events, branding, targeted campaigns in expanding sectors, and greater investment in digital channels.
Events led all categories by a wide margin, reflecting a clear preference for direct client engagement and relationship-building over broad reach plays. PR also strengthened, main media advertising returned to growth for the first time in three quarters, and direct marketing and sales promotions both moved back into positive territory. Market research, audio, published brands, and out-of-home were the categories still seeing cuts.
Forward-looking sentiment improved but stays cautious. More companies expect budgets to rise over the 2026/27 financial year than expect them to fall, and ad spend forecasts for the full year were revised upward even as UK GDP projections were trimmed on geopolitical uncertainty. The practical read: marketers are concentrating spend on channels with clearer ROI and client impact, and most are not pulling back despite the noise.
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