IPA Bellwether Q1 2026: Marketing Budgets Revised up to Highest Level in Almost Two Years

Why It Matters

The rebound signals renewed confidence in marketing as a growth lever, prompting firms to allocate resources toward channels and technologies that deliver clear ROI in a volatile environment.

Key Takeaways

• Marketing budgets rose +7.3% in Q1, strongest in two years.
• Events spending jumped +14.7%, leading channel growth.
• Main media ads returned to growth +4.5% after three quarters.
• AI moving from experiment to core, stressing data, identity, governance.
• Brands prioritize mid‑funnel and measurable ROI amid economic uncertainty.

Pulse Analysis

The latest IPA Bellwether data underscores a pivotal moment for UK marketers, who are emerging from a year of fiscal caution to re‑invest in growth‑focused initiatives. A net +7.3% lift in overall budgets reflects a broader confidence that marketing can drive revenue even as geopolitical tensions and cost pressures persist. Event‑centric spend, up +14.7%, illustrates a renewed appetite for direct, relationship‑building tactics, while the modest recovery in main‑media advertising (+4.5%) signals that video and online channels are regaining traction after a period of inertia. This shift in the media mix highlights a strategic pivot toward measurable, engagement‑rich formats.

At the same time, AI is transitioning from a pilot phase to a core operational tool, with brands emphasizing robust data foundations, persistent identity, and human governance to ensure reliable outcomes. By integrating AI‑driven targeting and granular analytics, marketers can extract higher ROI from each pound spent, moving beyond broad reach to precision‑focused campaigns. The emphasis on data quality and ethical oversight also mitigates the risk of over‑reliance on algorithmic assumptions, positioning AI as an amplifier of human judgment rather than a replacement.

Finally, the report reveals a heightened focus on mid‑funnel activities as consumer confidence wavers. With shoppers extending their purchase journeys, brands are investing in consideration‑building assets—reviews, transparent policies, and value‑centric messaging—to nurture trust and reduce friction. This balanced approach, coupling performance marketing with longer‑term brand equity work, equips companies to weather current uncertainty while positioning them for accelerated growth once confidence rebounds. Marketers that blend data‑driven AI, channel diversification, and mid‑funnel stewardship are poised to capture the next wave of market share.