If you’re a business owner planning your marketing for 2026, it’s easy to assume the choices are simple:
- Spend more and push harder
- Or spend less and wait it out
However, the latest IPA Bellwether Report (Q4 2025) suggests a more accurate reality:
UK marketing budgets haven’t collapsed, they’ve stalled.
And that matters, because a “pause” isn’t the same as retreating. It often signals something else:
2026 isn’t a marketing recession. It’s a marketing reallocation.
What the IPA Bellwether Report says about UK marketing budgets
In the final quarter of 2025, total marketing budgets recorded no change overall (a net balance of 0.0%).
That followed two quarters of growth earlier in the year, which means momentum softened.
In addition, most businesses kept budgets unchanged (57.4%), with the rest split between increases and cuts.
This suggests one dominant behaviour in the market:
Businesses are being careful, not inactive.
Because while spend has held, confidence has dropped.
Confidence is down and that changes how marketing decisions are made
The report shows a sharp shift towards pessimism:
- Company financial prospects: net balance -19.0%
- Industry financial prospects: net balance -30.1%
When confidence is low, leadership teams start to behave differently.
They still want leads, brand visibility and customer growth but they want less risk.
As a result, the marketing question becomes:
“What can we prove, quickly, with what we spend?”
What’s growing in marketing right now (and why it matters)
Even in a flat market, budget movement shows what decision-makers value.
PR is still rising
PR budgets increased again in Q4, rising for a tenth consecutive quarter (net balance +3.5%).
This is important because PR supports what most brands need more of in uncertain times:
- authority
- credibility
- reputation
- trust
- visibility that isn’t purely paid advertising
In other words, PR is becoming a commercial tool not a “nice to have”.
Events are still in favour (but they must perform)
Events budgets grew modestly in Q4 (net balance +1.4%) although this was a significant slowdown from the previous quarter.
What does that tell us?
Businesses still value face-to-face connection and experiences but they are becoming stricter about what events are worth funding.
In 2026, events will increasingly be expected to deliver:
- relationships that convert
- quality conversations
- meaningful follow-up
- measurable ROI
Where budgets are being reduced
This is where the report becomes extremely useful for business leaders and marketing teams.
Direct marketing declined for the first time in three years
Direct marketing budgets fell (net balance -4.3%) — a notable shift after years of increases.
This suggests many organisations are feeling the strain of:
- email fatigue
- declining response rates
- diminishing returns from “outreach-first” strategies
Direct marketing still works, but the bar is higher.
Generic sequences and low-value messaging are being exposed.
Market research is being cut (which is a risk)
Market research dropped again in Q4 (net balance -4.0%) and the outlook for 2026/27 predicts a sharper decline (-17.4%). GB_Bellwether_ENG_2601
This matters because brands still need insight.
However, many will be trying to operate with less formal research, meaning decisions may become more assumption-led.
The opportunity here is clear:
The most valuable marketers in 2026 will act like commercial intelligence partners, not just content producers
The main media picture: not “dead”, but harder to defend
Main media budgets were unchanged overall, but a closer look shows most sub-categories fell.
The worst affected areas include:
- Out of home: net balance -17.6%
- Audio: -10.2%
- Published brands: -6.5%
- Video: -5.0%
Meanwhile, the standout riser was:
- Other online advertising: +13.2%
This doesn’t mean “brand is irrelevant”.
It means businesses are prioritising channels that feel:
- measurable
- flexible
- responsive
- easier to justify under scrutiny
What this means for your marketing strategy in 2026
For business owners, MDs, and leadership teams, 2026 is likely to feel like this:
- marketing is still needed
- but every pound must work harder
- and every plan must be clearer
The winners won’t be the brands doing “more marketing”.
They’ll be the brands doing better marketing.
So what does “better” look like?
1) Prove the value of activity
This is the era of marketing accountability.
Even simple improvements can create confidence, including:
- clearer KPIs
- dashboards that link effort to outcomes
- stronger lead tracking
- conversion reporting by channel
Marketing doesn’t just have to perform.
It has to be explainable.
2) Build trust in parallel with performance
The Bellwether report’s PR trend reinforces something many businesses forget:
Trust is not separate from growth — it’s the multiplier. GB_Bellwether_ENG_2601
If your marketing creates attention but no confidence, conversion stalls.
Trust-led assets matter more than ever, such as:
- case studies
- testimonials
- credible founder positioning
- third-party visibility (press, podcasts, speaking)
- consistency of message
3) Use digital because it’s measurable but don’t become short-term obsessed
Online advertising is gaining budget share for a reason.
However, this is where many brands make a mistake:
They build marketing that performs for 30 days, then collapses.
A better 2026 approach is:
- always-on content and visibility
- structured campaigns
- a simple sales funnel that can be improved over time
- clear re-engagement systems
This creates stability, not just spikes.
Marketing budgets for 2026/27: shallow growth, high scrutiny
Early budget-setting data suggests a small increase planned for 2026/27 total marketing spend (net balance +1.7%).
In plain English:
Marketing budgets may rise slightly.
But expectations will rise significantly.
That means the opportunity is not simply spending.
It is:
Strategy, focus, measurement, and execution.
Final thought: marketing will not be “protected” in 2026 it will be earned
The biggest shift this report points to isn’t a drop in spending.
It’s a change in what marketing must represent inside a business:
Not an expense.
Not “nice to have”.
Not a set of tactics.
But a commercial function that drives outcomes.
If you want your marketing to grow in 2026, start by making it:
- more accountable
- more focused
- more trust-building
- more consistent
- more connected to revenue
Because in a cautious market, marketing isn’t judged by effort.
It’s judged by impact.
Want a stronger marketing plan for 2026?
If you want help building a measurable strategy that works in a cautious market, the starting point is simple:
We review what you’re currently doing, what’s working, what’s not, and where your biggest growth opportunities are.
Then we build a plan that delivers outcomes... not just activity.