Rappi

UK Marketers Cautiously Boost Budgets Amid Economic Uncertainty

UK marketing budgets rose for the second straight quarter in Q3 2025 according to the IPA Bellwether Report, though growth slowed amid economic and political uncertainty ahead of the Autumn Budget. The net balance was +3.6%, down from +5.5% in Q2, with 22% of panellists reporting increases and 18.7% reporting reductions. Growth was driven by events and direct marketing, while main media budgets remained flat; video and online categories grew, but budgets for published brands, audio, and OOH declined, and sales promotions fell to -0.9% from +9.4%. The IPA kept its 2025 ad spend forecast at 0.6%, while 2026 forecasts were trimmed from 1.6% to 1.2%. The report emphasizes balancing immediate ROI with long-term brand building, as AI tools reshape research and targeting and push spend toward ABM, LinkedIn, Meta, earned media, and programmatic channels. Industry voices stress accountable measurement, stronger brand storytelling, and a continued shift toward omnichannel strategies into early 2026.

Is AI Investment Worth the Cost?

An op-ed by James Heimers, SVP of analytics at RAPP, questions whether surging AI investment will deliver proportional value. It notes a perceived 'tech overhang' where data hoarding and big data promises have yet to translate into measurable ROI. Citing Goldman Sachs' Gen AI: Too much spend, too little benefit? the piece highlights a projection of AI capital expenditure exceeding USD$1tn in coming years. MIT's Daron Acemoglu and Goldman Sachs' Jim Covello express skepticism about AI's economic upside. The article argues for contextual clarity and enriched data—combining first-party data with third-party and macro data—to better predict customer behavior and ROI. It also outlines a foundation for sustainable AI: strategic integration, connected data, governance and ethics, and a culture that values experimentation and human insight, including using AI for pre-launch creative testing.

AI in Advertising: Big Tech's Risks and Rapid Changes

AdExchanger’s Thursday news roundup surveys rapid AI adoption in advertising, ongoing platform automation, and privacy discussions. It highlights Meta’s 2023 layoffs described as the 'year of efficiencies,' alongside a machine-learning glitch that misappropriated hundreds of millions from Meta advertisers and a chatbot that offered no remediation. The piece notes Google's expansion of AI-driven customer service and a paid account tier launched in August. Temu’s aggressive ad spend is quantified at about $1.1 billion on Meta over the past year, representing roughly 6% of Meta’s North America ad revenue and positioning Temu as a major bidder in shopping keywords. On privacy, the FTC proposes COPPA updates to default off targeted ads for under-13s and tighten data-retention and persistent-identifier rules, with a 60-day public comment period before a vote. The roundup ends with Paramount in merger talks with Warner Bros. Discovery and related media industry moves, including exec hires and lawsuits.