UK marketers raised their advertising budgets during Q2 2025, according to the latest edition of the IPA Bellwether Report, with a net balance of 5.5 percent of respondents increasing their marketing spend. The upward revision follows a decline in Q1, which marked the first drop in four years.
The net figure is derived from the proportion of marketers who increased their budgets during the previous quarter, minus those that decreased their budgets. And while Q1’s results were tempered by uncertainty caused by Donald Trump’s tariff announcements, Q2 saw a “robust rebound” as marketers upped their spending.
Tariffs and tactics
That said, the findings suggest the nature of the spending was focused on short-term results at the expense of long-term marketing efforts, and many of the report’s commentators warn against such an approach. The highest budgetary increases were for sales promotions (+9.4 percent) and direct marketing (+9.1 percent), while main media spending was unchanged at 0 percent, with video budgets also flat during the quarter.
But that stability was driven by growth in online advertising channels, according to the IPA, while out-of-home (-8.9 percent), audio (-6.3 percent) and published brands (-4.8 percent) all saw budgetary declines in Q2.
“It’s positive to see the UK advertising market returning to growth, but this is largely driven by immediate, response-focused channels,” said Nichola Elgie, Senior Account Director, Drummond Central and IPA City Head for Newcastle and the North East. “Brand-building channels like OOH and radio are seeing sharp declines. While brands are adapting quickly, there’s a risk in over-prioritising short-term, sales-driven tactics. The most effective results still come from distinctive, memorable ideas that endure beyond a quick promotion. Agencies must stay focused on what brands truly need: calm, strategic thinking that avoids the trap of short-termism and supports long-term brand growth.”
Looking longer-term
The Bellwether survey also monitors financial prospects at both the company and industry level, following a period of “deep negativity” during Q1. In the latest quarter, respondents were split on their company’s prospects – and while the results were more optimistic than Q1, the net balance remained in sub-zero territory (-3.0 percent) for the fourth consecutive quarter.
And that negativity was stronger still for industry-wide financial prospects, with the gloomy outlook (-26.2 percent) continuing a trend of pessimism that has persisted since Q4 2021.
Meanwhile the growth forecast for the UK ad market remains subdued, according to S&P Global Market Intelligence. While the analysts still project growth following stronger-than-expected results in Q1, the report suggests that “rising job losses and a general sense of economic uncertainty” have depressed the appetite for advertising. Ad spend forecasts for 2025 have therefore been lowered from 1.3 to 0.7 percent, although the market is expected to recover to 1.6 percent in 2026.
Beyond next year, growth is projected to reach 2.1 percent for 2027 and 2028, while tariff-related uncertainties and ongoing geopolitical tensions in the Middle East are “likely to dampen business and household sentiment.”
“Looking at the broader picture, we welcome the news that UK companies have revised their marketing spend upwards in Q2,” commented Paul Bainsfair, IPA Director General. “However, a closer look at this quarter’s findings reveals that the increase in spend is largely driven by tactical approaches. While agility is crucial in today’s fast-paced market, it’s essential that short-term activation efforts are balanced with sustained investment in long-term, emotionally-driven brand-building strategies. By striking this balance, companies can position themselves not only for immediate success but also for enduring growth in an increasingly competitive landscape.”
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