UK Marketing Budgets Hit Their Highest Level in Over Two Years, Says IPA Bellwether
TL;DR: UK companies revised their marketing budgets up by a net +14.3% in Q3 2026, the strongest reading since Q2 2024 and the third rise in a row. Every one of the seven Bellwether categories grew, PR hit a series high, and main media posted its best quarter in nine quarters. Sentiment is still negative, but less so.
The headline numbers
The latest IPA Bellwether Report, published on 15 October 2026, shows 25.6% of panellists raising their marketing budgets in Q3 against 11.3% cutting them, a net balance of +14.3%. That is up from +6.9% in Q2 and the highest level since Q2 2024.
Year-to-date growth has comfortably beaten executives’ expectations for the 2026/27 financial year. Firms had pencilled in a net +3.0% for the year, and the latest quarterly revision alone is almost five times that.
Every category grew, with PR out in front
All seven Bellwether categories recorded growth in Q3, and revisions in every one beat the expectations firms set at the start of the financial year.
PR led the rankings, jumping from +1.4% in Q2 to a series high of +15.3% and extending its run of upward revisions to 13 quarters. Events slipped from first to second place, but still climbed from +11.0% to a nine-quarter high of +15.1%.
Sales promotion surged from +0.9% to +13.1%, a whisker below the record +13.4% set in Q2 2023. Direct marketing rose from +3.0% to +5.2%.
Main media’s best quarter in nine quarters
Main media advertising rose from +1.5% to +9.8%, and for the first time since the five sub-categories were tracked in Q1 2020, growth was broad-based.
Other online led the upturn, swinging from -5.1% to +17.2%. Video rose from +8.2% to a two-year high of +9.8%. Out-of-home turned positive (-2.5% to +3.6%) for the only positive reading in its series history, while audio (+1.1%) and published brands (+0.8%) both edged back into growth.
Market research also broke a long drought: +5.2% is its first positive reading in seven quarters and the highest since Q4 2021. The “other” category managed +1.0%, its first upward revision in nine years.
Confidence improves, but stays negative
Companies remain pessimistic about financial prospects, just less so than three months ago. The industry-level net balance improved from -25.1% to -20.3%, its best in nearly two years, though 34.6% of firms were downbeat against 14.3% optimistic.
At company level the balance moved from -9.6% to -2.7%, with 27.3% bearish and 24.6% bullish.
Forecasts upgraded for 2026, trimmed for 2027
S&P Global Market Intelligence raised its UK GDP growth forecast for 2026 to 1.2%, from 0.6%, crediting a stronger first half supported by the FIFA World Cup, hot weather and tech-related investment. The lack of a lasting US–Iran peace deal and high fuel prices remain headwinds, and high energy costs are expected to keep inflation above the Bank of England’s 2.0% target.
The Bellwether adspend forecast for 2026 improved to 2.8%, from 2.1% in Q2. Growth for 2027 was cut from 2.3% to 1.3%, though 2028 is expected to rebound to 2.4%.
What the industry is saying
Paul Bainsfair, Director General, IPA: “With growth back at the top of the Government’s agenda, it’s encouraging to see businesses increasing marketing investment at the strongest rate in more than two years, underlining advertising’s role as a driver of demand, competitiveness and economic prosperity.”
He added a warning on promotions: “While promotions have their place, marketers should be wary of becoming hooked on short-term activation. Recent evidence suggests that over-reliance on promotions can erode long-term value.” In his words, “the most successful businesses are those that balance demand capture with demand creation.”
Maryam Baluch, Economist at S&P Global Market Intelligence and author of the Bellwether Report: “With the UK economy beating expectations so far in 2026, it’s unsurprising to see businesses showing a strong willingness to lift marketing spend. The latest Bellwether data showed a substantial rise in total marketing budgets during the third quarter, with several underlying categories recording exceptionally strong upward revisions. In all cases, quarterly budget growth exceeded expectations set earlier in the year, highlighting the breadth of the improvement.”
Jodie Gillary, head of brand intelligence at Kantar: “For me, a few little letters with big consequences sum up this quarter: LLMs. Marketers are having to work harder than ever to sell not just to humans, but to the bots too. AI search is clearly at the front of CMOs’ minds, so the rising spend on PR and events – channels which create the online footprint and buzz which LLMs draw on when making recommendations – comes as no surprise.
“But the principles of getting noticed and driving growth remain the same: brands have to stand out and they have to give real people a reason to care. Our latest research into the UK’s most valuable brands found that those which significantly strengthened their meaning and relevance for consumers grew their value by a huge 140% over the past six years. This relies on brands truly understanding their customers’ needs and motivations and channelling that intelligence into campaigns, products and services which really fit with their lives. Increasing spend is only half the battle – if it’s not clear why the brand is relevant, LLMs simply won’t clock it and won’t suggest it, and that’s sales left on the table.”
Marketing Minute’s read
The breadth is the story. When every category rises and PR and events lead, firms are spending on trust and visibility, not just short-term sales. Gillary’s point about LLMs adds a new reason: the coverage, events and mentions that PR creates are the raw material AI search draws on.
The caution is in the mix. The jump in sales promotion is understandable with confidence still negative, but Bainsfair is right that it can’t carry a brand alone. And with the 2027 adspend forecast cut to 1.3%, this may be a strong quarter rather than a new trend.
What marketers should do now
Don’t let promotions crowd out brand-building: protect a demand-creation budget alongside activation. Treat PR and events as part of your search strategy, because the visibility they create is what AI assistants and search engines pick up. And if you are an SME, use the recovery in main media, especially online and video, to test channels that were too expensive or crowded a year ago.
Quick FAQ
What did the Q3 2026 IPA Bellwether Report find?
A net balance of +14.3% of UK companies revised their total marketing budgets up in Q3, the highest since Q2 2024 and the third consecutive quarterly increase.
Which marketing channels grew most?
PR led at a series-high +15.3%, followed by events at +15.1%. Sales promotion (+13.1%) and main media (+9.8%) also rose sharply, and all seven categories grew.
What is the IPA Bellwether Report?
A quarterly survey of around 300 UK marketing professionals, researched by S&P Global Market Intelligence for the Institute of Practitioners in Advertising, tracking budget intentions and financial confidence.
What is the 2026 adspend forecast?
S&P Global Market Intelligence now expects UK adspend growth of 2.8% in 2026, up from 2.1% in Q2, with 2027 trimmed to 1.3% and 2028 at 2.4%.
Budgets are rising everywhere, but the smart money is balancing today’s sales with tomorrow’s brand. Spend that builds meaning, not just promotions, is what will still be paying off when the cycle turns.
— Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
The takeaway: a broad, PR- and events-led recovery in UK marketing budgets, with confidence still fragile. Is your mix balanced between capturing demand and creating it?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
Sources: IPA Bellwether Report Q3 2026 (IPA / S&P Global Market Intelligence press release, 15 October 2026); Kantar.
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Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
