UK Marketing Budgets Rise to Their Highest Level in Over Two Years: What the Q3 2026 IPA Bellwether Report Means for Your Business

After a few cautious years, UK businesses are spending more on marketing again, and at the fastest rate for some time.

According to the latest IPA Bellwether Report, published on 15 October 2026, UK companies revised their total marketing budgets upwards in Q3, reflecting a more supportive economic backdrop. Here's what the figures show and what they could mean for your business.

What is the IPA Bellwether Report?

The Bellwether Report is a quarterly survey of UK marketing budgets, published by the IPA (the Institute of Practitioners in Advertising) and authored by S&P Global Market Intelligence. It's widely regarded as one of the most reliable barometers of UK marketing spend.

The report uses a "net balance": the percentage of companies that increased their budgets minus the percentage that cut them. A positive figure means more businesses are spending more than are spending less.

The headline figures

Just over a quarter of companies surveyed (25.6%) raised their budgets in Q3, compared with 11.3% that cut them, giving a net balance of +14.3%.

That's the third consecutive quarter of increases, with the net balance rising from +6.9% to its highest level since Q2 2024.

It's also well ahead of what businesses expected at the start of the year. Companies' initial outlook for the 2026/27 financial year was a net balance of +3.0%, which was downbeat by historical standards, and the latest quarterly figure is almost five times higher.

Every category grew

All seven Bellwether categories recorded budget growth in Q3. Here's how they performed:

• Public relations: led the rankings, rising from +1.4% in Q2 to a series high of +15.3% and extending its run of upward revisions to 13 quarters.
• Events: slipped to second place, though its net balance rose from +11.0% to a nine-quarter high of +15.1%.
• Sales promotion: jumped from +0.9% to +13.1%, beaten only by the record +13.4% set in Q2 2023.
• Main media advertising: rose from +1.5% to +9.8%, a nine-year high.
• Direct marketing: increased from +3.0% to +5.2%.
• Market research: reached +5.2%, its first positive reading in seven quarters and the highest since Q4 2021.
• Other: recorded the weakest increase at +1.0%, but this was a sharp improvement from -10.8% in Q2 and the category's first upward revision in nine years.

Online led the rise in advertising spend

Within main media advertising, the growth was unusually widespread. For the first time since data on the five main media subcategories began to be collected in Q1 2020, budget growth was broad-based.

"Other online" led the way, rebounding from -5.1% to +17.2%, followed by video, which rose from +8.2% to a two-year high of +9.8%. Out-of-home rose from -2.5% to +3.6%, while audio and published brands recorded modest increases, to +1.1% and +0.8% respectively.

Confidence is improving, but caution remains

Businesses are spending more, but they aren't feeling especially optimistic yet. Companies remained pessimistic about financial prospects for both their industry and their own business in Q3, although sentiment was less negative than in the previous quarter.

Industry-wide sentiment stood at -20.3%, improved from -25.1%, with 34.6% of firms downbeat compared with 14.3% who were optimistic. For their own companies, the net balance improved from -9.6% to -2.7%.

The wider economic picture

The rise in spending reflects a stronger-than-expected economy. The UK GDP growth forecast for 2026 has been raised from 0.6% to 1.2%, which S&P Global Market Intelligence attributes to stronger-than-expected growth in the first half of the year, supported by the FIFA World Cup, hot weather and tech-related investment.

There are still headwinds. The lack of a lasting US–Iran peace deal and high fuel prices remain concerns, and high energy costs are expected to keep inflation above the Bank of England's 2% target.

S&P Global's adspend forecast for 2026 has improved to 2.8% from 2.1%, while 2027 has been revised down from 2.3% to 1.3%, with 2028 expected to rebound to 2.4%.

What this means for your business

Your competitors may be spending more. If budgets are rising across the UK, it's likely some of the businesses you compete with are investing more in their visibility. Standing still could mean falling behind.

Don't rely only on short-term promotions. The IPA itself sounded a note of caution here. Director General Paul Bainsfair said the rise in sales promotion spending is understandable, but that "marketers should be wary of becoming hooked on short-term activation", adding that recent evidence suggests over-reliance on promotions can erode long-term value. Discounts can drive quick sales, but building your brand is what keeps customers coming back.

Results are attracting further investment. Several IPA regional chairs noted that panellists pointed to positive campaign results as a reason for investing more. Tracking what's working gives you the evidence to invest with confidence.

Online channels are worth a fresh look. With the strongest growth in "other online" and video, now is a good time to make sure your website, search visibility and video content are in good shape to make the most of any extra investment.

The bottom line

The Q3 2026 Bellwether Report is the most encouraging for UK marketing in over two years, with growth across every category and a stronger economic backdrop. Confidence remains fragile and forecasts for 2027 are softer, so this is a good moment to invest thoughtfully, balancing short-term sales with building a brand that lasts.

Frequently asked questions

What is the IPA Bellwether Report?

It's a quarterly survey of UK marketing budgets, published by the IPA and authored by S&P Global Market Intelligence, tracking whether companies are increasing or cutting their marketing spend.

Did UK marketing budgets increase in Q3 2026?

Yes. The net balance of companies revising budgets upwards was +14.3%, the highest since Q2 2024 and the third consecutive quarterly increase.

Which marketing category grew the most?

Public relations led with a net balance of +15.3%, a series high, closely followed by events at +15.1%.

What does "net balance" mean?

It's the percentage of companies that increased their budgets minus the percentage that reduced them. In Q3 2026, 25.6% increased and 11.3% reduced, giving +14.3%.

Planning your marketing for 2027?

If you're thinking about where to invest next year, whether that's your website, search visibility or content, book a free discovery call with the Pollard Media team.

Source: Q3 2026 IPA Bellwether Report press release, IPA, 15 October 2026.