UK marketers continued to increase spending during the second quarter of 2026 despite mounting geopolitical and economic uncertainty, according to the latest IPA Bellwether Report.
The quarterly survey found that 23.8% of businesses increased their marketing budgets between April and June, while 16.9% reported cuts, leaving a net balance of +6.9%. Although slightly below Q1’s +7.3%, it represents the second-strongest quarter for marketing budget growth in the past two years.
For agencies and marketers across the North, the figures point to continued resilience in client investment, with events once again emerging as the strongest-performing discipline.
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A net balance of +11% of respondents increased spending on events during the quarter, making it the best-performing category for a second consecutive quarter. Direct marketing followed with a net balance of +3%, while both main media advertising (+1.5%) and PR (+1.4%) also remained in positive territory, albeit at lower levels than at the start of the year.
Within main media, video advertising was the standout performer, with investment reaching a seven-quarter high (+8.2%). Audio budgets stabilised after three years of decline, while published brands continued to face the sharpest cuts (-8.3%). Spending on other online advertising also slipped into negative territory for the first time in seven quarters.
Despite continued investment, confidence among marketers about the wider economic outlook weakened significantly.
The proportion of businesses expecting their own financial prospects to improve fell from a positive balance of +0.6% in Q1 to -9.6% in Q2. Sentiment towards wider industry prospects was even more subdued, with a net balance of -25.1% as more than a third of respondents expected conditions to deteriorate.
Paul Bainsfair, the IPA’s director general, said: “The overriding message from this quarter’s report is that UK companies continue to recognise the value of advertising.
“Encouragingly, we also see signs that businesses understand the importance of investing in long-term brand-building; within the main media category, investment in video advertising has been revised up to its highest level in almost two years, while spending on other online activity – a shorter-term activation medium – has been cut for the first time in seven quarters.
“Despite these positive markers, it is understandable that companies’ financial confidence levels have taken a hit this quarter. Amid geopolitical turmoil, wars, ongoing heightened inflation, supply-chain disruption, not to mention political upheaval closer to home, it makes for an undeniably tough and uncertain environment in which to operate.
“In light of such challenges, it is therefore more important than ever that companies play the long game and continue to invest in brand-building media that is proven to be better placed to drive sustainable business growth.”
Maryam Baluch, economist at S&P Global Market Intelligence and author of the Bellwether Report, added: “Bellwether panellists have demonstrated notable resilience against a backdrop of persistent economic uncertainty. By continuing to bolster marketing spend – particularly as high inflation threatens to weigh on consumer demand – respondents are indicating a commitment to investment and brand-building activities that underpin growth.
“The fact there hasn’t been a considerable scaling back of activity in response to the economic shock arising from the Middle East war suggests firms are taking a strategic, longer-term view rather than getting bogged down in short-termism.”
Looking ahead, S&P Global Market Intelligence left its UK GDP growth forecast for 2026 broadly unchanged at 0.6%, while forecasting real-terms advertising spend growth of 2.1% this year, rising to 2.3% in 2027 and 2.4% in 2028.
