Industry figures say the latest IPA Bellwether findings reflect a market that remains willing to invest in growth but only where budgets can deliver measurable impact.
Now marketing leaders from across the North and beyond have told Prolific North they are seeing much the same picture on the ground, with brands continuing to prioritise investment in long-term growth, while becoming increasingly selective about where they spend.
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The latest quarterly survey found that 23.8% of businesses increased their marketing budgets during Q2, compared with 16.9% that reported cuts, producing a net balance of +6.9% – the second-strongest quarter for marketing budget growth in the past two years.
Events remained the strongest-performing discipline, while video advertising reached a seven-quarter high. However, confidence in businesses’ own financial outlook fell sharply, underlining the uncertain economic backdrop.
Adam Hutton, Finance Manager at Manchester-based Edison Media, said the findings were encouraging and reflected the importance of continued investment during uncertain times. “We find the findings in the Bellwether Report very promising,” he said. “A strong marketing spend is critical to facilitating growth within an organisation and is fundamental to countering the negative impacts of the current global economy. Partnered with intelligent, forward-thinking strategies ensuring a maintained ROI, an increase in marketing will bear fruit in line with the increased spend short term, and provide the platform for continued structured, sustainable growth going forward.”
Fergal O’Connor, CEO of BuyMedia, said the report mirrored exactly what his business was seeing among clients. “This report matches exactly what we’re seeing on the ground with clients,” he said. “Nobody’s popping champagne, but nobody’s pulling the plug either. Confidence is clearly rattled though and you can see that in the financial prospect numbers but spend is still going up. That gap between how people feel and how they’re actually behaving is the real story here and it’s one I think a lot will miss if it just focuses on the sentiment numbers.
“What’s interesting is that budget growth in Q2 actually beat what businesses themselves forecast going into the year. That’s proof that when it comes down to it, marketers are choosing to back growth even while they’re nervous about the wider economy. We’re seeing the same pattern with our own clients. Commercial pressure is real, procurement conversations are tougher than they were twelve months ago, but nobody’s walking away from investment. They’re just being sharper about where it goes.
“Events leading again for a second straight quarter doesn’t surprise me brands want measurable, direct engagement with audiences right now, not just reach. And the video number is the one I’d point marketers to with a seven-quarter high, while shorter-term activation spend gets cut. That’s brands choosing to build rather than just activate, which is exactly the kind of long-term thinking that pays off when conditions do eventually turn.
“For the second half of the year, I’d expect that trend to hold more scrutiny on every euro and every pound, but continued investment in the channels that build something lasting rather than chase a quick win.
“For marketers, the lesson from this report is simple – don’t let boardroom nerves talk you out of budgets that are still delivering. The data backs continued investment, the confidence just hasn’t caught up yet. That’s precisely the gap we built BuyMedia to help clients navigate by giving them the clarity and commercial discipline to keep investing with conviction, even when the wider mood is uncertain.”
Dean Bartle, director of Leeds-based Better Placed, said recruitment trends were also pointing towards renewed confidence. “From a recruitment perspective we have seen an upturn, specifically at the senior end within marketing,” he said. “Clients seem happier to invest at the ‘head of’ and ‘director’ level more than they have in a while. So if our sector is any sort of barometer of the economic outlook, it feels quite positive currently.”
Chris Daly, Chief Executive of the Chartered Institute of Marketing, said the figures raised an important question about how businesses were choosing to invest. “The latest IPA Bellwether Report offers an encouraging signal for the marketing profession,” he said. “Despite ongoing economic uncertainty, UK organisations increased marketing budgets for the second consecutive quarter, reaching the second-highest level recorded in the past two years. At face value, this reflects growing confidence in marketing’s ability to drive business performance. But, perhaps the more interesting question we should be asking is, are they investing more strategically, or simply spending more?
“Strong increases were seen in events (+11.0%) and direct marketing (+3.0%), highlighting a continued focus on creating meaningful customer connections and delivering measurable results. Yet the sustained growth in PR (+1.4%) and main media advertising (+1.5%) is equally significant. In a business environment increasingly under pressure to deliver short-term returns, these figures suggest many organisations still recognise the value of brand building, reputation and trust.
“The challenge for marketers is that growth rarely comes from choosing between brand and performance. The evidence consistently points to organisations that do both. So, while it’s positive to see budgets increasing, leaders should ask themselves whether investment is being distributed in a way that supports both immediate commercial objectives and long-term brand building.
“Ultimately, the Bellwether findings present a reason for optimism, but they also serve as a reminder. Sustainable growth depends on more than increased spend. It requires organisations to take a joined-up approach, balancing short-term performance with long-term brand building, while ensuring their people have the skills and confidence needed to maximise every pound invested.”
Sarah Logan, Head of GTM, EMEA at Intuit Mailchimp, said the report demonstrated that businesses increasingly viewed marketing as an investment rather than a cost. “The latest IPA Bellwether Report is another strong vote of confidence in marketing. A second consecutive quarter of budget growth – and the second-highest investment levels in two years – shows that, despite ongoing economic pressure, businesses continue to recognise marketing as a driver of growth rather than discretionary cost.”
She said it was no surprise to see direct marketing among the biggest investment priorities, arguing that brands were increasingly prioritising channels capable of delivering “relevance, immediacy and measurable impact.”
However, she added that direct marketing worked best as part of a broader omnichannel approach, while today’s consumers expected authentic content rather than an over-reliance on sales promotions.
For Fiverr chief marketing officer Matti Yahav, the report highlighted a broader shift towards authenticity in an AI-driven world.
“The most interesting thing in the latest IPA Bellwether report is where marketers are choosing to put their money.
“Events and PR are growing because, in a world where anyone can generate almost unlimited content, people are looking for something real. They want trusted voices, shared experiences and communities they can be part of.”
He argued that while AI had made content creation faster and cheaper, “the human work around it: the idea, the taste, the judgment and the understanding of the audience” had become even more valuable.
