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20th October 2025

Bellwether Report Q3 2025

This quarter’s IPA Bellwether delivers encouraging signs for brands.

Digital grows as traditional media declines.

We explore the UK’s quarterly snapshot of marketing spend and confidence – and what the latest results tell us about the months ahead.

Key findings

Marketing investment continues: Total UK marketing budgets expanded by +3.6% in Q3 – the second consecutive quarter of growth despite economic uncertainty. Businesses continue to view marketing as a vital lever for performance and stability.

Events and direct marketing lead: These categories saw the strongest growth this quarter, with events up +10.9% and direct marketing close behind at +9.7% – highlighting a continued focus on engagement and measurable impact.

Digital rising, traditional falling: Main media marketing spend held flat in Q3 overall (0.0% net balance), but there were bright spots in video (+6.7%) and online (+2.1%). In contrast, traditional formats – print (-6.2%), audio (-13.0%), and out-of-home (-15.2%) – saw sharp declines, reinforcing the ongoing shift toward digital-first strategies.

Cautious optimism: For the first time since Q2 2024, company-level financial prospects turned positive, with a net balance of +2.9% of businesses expressing confidence in their own outlook. However, wider industry confidence remains low (-24.0%), suggesting optimism is selective and strategy-driven rather than widespread.

2026 planning needs focus: With adspend growth expected to slow next year, brands should sharpen investment decisions – prioritising ROI, agility, and performance-led channels. Forward planning, flexible budgeting, and real-time data will be key to maintaining momentum in a cautious market.

 

Market outlook

Despite fiscal uncertainty, UK marketing budgets are holding steady. Many brands are showing confidence with control – maintaining investment in the channels that drive results, while sharpening focus on performance.

“We’re seeing businesses hold their nerve – protecting what works and investing in data-led growth,”

says Rob, Owner of Hunterlodge Advertising.

With 2026 planning underway, this quarter’s results reinforce the importance of strategic allocation, adaptability, and continual measurement to navigate a cautious but optimistic market.

 

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