The Q3 2024 IPA Bellwether Report reveals a significant pause in total UK marketing budget growth due to uncertainty surrounding the Autumn Budget. Marketing budgets showed a net balance of 0.0% between increases and decreases, a stark drop from Q2’s +15.9% and the prior 13-quarter average of +8.8%.
- Direct Marketing and Main Media Advertising recorded a second quarter of increases, rising to +4.3%, driven by video campaigns (+11.7%).
- Out of Home, Audio and Other Digital Marketing saw declines, with out of home falling sharply (-15.7%).
Sentiment towards financial prospects has turned negative, marking the first pessimistic outlook in seven quarters. The industry-wide view is also subdued, with a net balance of -16.2%. Adspend forecasts have been revised up to 0.6% for 2024 and 1.3% for 2025, supported by S&P Global’s optimistic UK GDP growth forecast. The advertising growth rate is expected to stabilise at around 2% annually beyond 2027.
View from Rob Hunter (Hunterlodge CEO)
Rob Hunter sees the Q3 Bellwether results as a reminder of the need for brands to strike a balance between caution and long-term planning. The sharp dip in budget optimism reflects a cautious approach, but he believes it’s vital for companies to maintain a steady investment in brand visibility, especially as consumer expectations remain high.
Hunter emphasises the strength in core channels specifically main media video. He observes that it speaks to a growing desire for authenticity and direct consumer engagement. It’s something he says he’s witnessed firsthand with Hunterlodge’s growing Higher Education portfolio of clients who are all seeking more meaningful connections and personalised brand narratives.
“By staying visible when others pull back,” he notes, “brands reinforce their resilience and relevance.” Hunter expects that as clarity around economic policies improves, companies will likely resume budget growth to capitalise on the coming year’s opportunities, particularly for those who seize this period to stand out in the market.
