UK Marketing Budgets Increasing, Suggests IPA

UK companies revised their marketing budgets up to the second highest level in two years in Q2 2026, according to the latest IPA Bellwether Report. Budgets for 'Market Research' - a category we feel fails to reflect changes in our sector - were more likely to fall than rise, but fared slightly better than last quarter.

The report has run since 2000 and is based on a questionnaire survey of around 300 of the UK's top 1000 companies, providing regular quarterly information on trends in their marketing activities. Respondents are primarily marketing directors or similar, and data collection for the latest wave was conducted between 1st and 23rd June.

This quarter, 23.8% of respondents reported an increase to their marketing spend, in comparison with 16.9% who recorded cuts, giving a net balance of +6.9%. Combined with Q1's even stronger +7.3%, this suggests 'a historically strong expansion in budgets,' according to the IPA.

Events were the biggest area for increased spend, with a net balance of +11.0% (albeit down from +14.7% in Q1); followed by direct marketing with a net balance of +3.0%, down slightly from +3.6% in Q1. Main media advertising and PR also recorded modest growth in budgets at +1.5% and +1.4%, but these were well down on figures of +4.5% and +6.0% respectively, in the first quarter.

'Market research' and 'other' activities were the only two categories to see net negative scores, although the net balance for market research improved to -4.1%, from -8.5% in Q1, while the 'other' category weakened further, from -8.9% in Q1 to -10.8%.

Respondents are also asked about their views of the prospect for their own business and those of their industry as a whole, and in this they were gloomier than in the previous quarter: a net balance of -9.6% predicting better financial prospects at their own business (Q1 +0.6%); while pessimism about the industry as a whole deepened (-21.0% in Q1 and -25.1% in Q2).

Maryam Baluch, Economist at S&P Global Market Intelligence and author of the Report, says panellists 'have demonstrated notable resilience against a backdrop of persistent economic uncertainty... indicating a commitment to investment and brand-building activities that underpin growth.' Bill Doris, VP Analytics Lead, EMEA, WPP Media & IPA Media Research Advisory Group Chair says of the results for MR: '[The report} for Q2 2026 shows market research is still navigating a bit of a dry spell, hitting its sixth consecutive quarter of budget cuts. About 15.7% of companies trimmed their spending, leaving a net balance of -4.1%. While that's a solid decline, it's actually an improvement on Q1's -8.5% and significantly less severe than the -13.7% plunge executives originally feared for the 2026/27 financial year. Is AI posing a direct risk to traditional, human-led research business models?'

MrWeb's Nick Thomas says the IPA figures, 'though of interest, are of less significance as time goes on due to changes in the scope of the sector and definitions of what it is we do. 'We struggle to reconcile the continuing gloom from the IPA survey concerning 'Market Research' with very strong figures for growth from the MRS and other sources, as well as our own more mixed view of an industry which has shown many positive signs this year and recorded many success stories (in DRNO and elsewhere). It's likely that by continuing to ask about budgets for 'market research' the survey is focusing respondents' perception on more traditional modes of MR, and were they to include new forms of intelligence gathering and analytics, which we tend to include in the function of modern MR departments and companies, we might be seeing strong net positives for the sector. Yes, this would have its own challenges in ensuring comparability, but perhaps it's time for the IPA to bite the bullet and rescope.'

The IPA is online at www.ipa.co.uk .