The IPA has revised down its 2026 adspend growth forecast, from 1.6% to 1.2%, as a result of the findings from its Q3 Bellwether Report.
Over a third of the UK-based companies surveyed predicted foresaw industry decline, compared with slightly under a tenth who reported feeling optimistic. That said, more than a quarter of respondents said they felt optimistic about their own company’s outlook.
The forecast for the remaining quarter of 2025 is unchanged at +0.6%, and predictions for 2027 and 2028 are also unchanged at 2.1%, showing faith that adspend will continue to slowly increase over the next few years.
The Bellwether report showed companies’ sales promotion budgets have reduced by 0.9%, year on year, compared with a 9.4% increase last quarter. Market research budgets continued to drop, with a 6.8% fall in Q3, following a 7% drop in Q2.
There was growth in some areas, particularly in marketing that targets customer engagement and lead generation in what IMA MD Alex Uprichard called ‘a clear shift towards activity that delivers measurable impact’.
The increase in budgets for events was seven percentage points higher than in Q2, while direct marketing and PR were up by 0.6 and 0.2 percentage points respectively.
Overall, main media budgets were unchanged over the last year, but within the category, more is going to video and other online main media instead of published brands, audio and out-of-home.
Featured image: Towfiqu Barbhuiya / Unsplash
