IPA vs WARC

UK Marketing Budgets Rise Across All Categories in Q3

The IPA Bellwether Report for Q3 2026 indicates a broad recovery in UK marketing budgets, with a net balance of +14.3% of marketers increasing spend—the highest in nine quarters and the third consecutive quarterly growth. All main media subcategories saw upward revisions for the first time, including main media (+9.8%) and 'other online' (+17.2%). PR (+15.3%) and events (+15.1%) led growth, followed by sales promotions (+13.1%). Despite this, industry and company-level financial confidence remain negative, though improved from Q2. S&P Global raised UK GDP growth forecasts for 2026 to 1.2%, supported by events like the FIFA World Cup, but risks from geopolitical tensions and high fuel prices persist. Ad spend forecasts were revised up for 2026 to 2.8% but down for 2027 to 1.3%. Industry experts offer mixed reactions, highlighting opportunities in creator marketing, out-of-home, audio, and video, while cautioning about walled gardens and the need for data quality and attention measurement as AI becomes more prevalent.

• Net balance of +14.3% of UK marketers increased budgets in Q3 2026, marking the third consecutive quarterly growth and the strongest since Q2 2024.
• All main media subcategories saw upward revisions for the first time; main media budgets rose by +9.8%, with online, video, and OOH leading.
• PR budgets experienced the highest increase at +15.3%, continuing 13 consecutive quarters of growth, followed by events (+15.1%) and sales promotions (+13.1%).

AMV BBDO & Spark Foundry win 2026 IPA Effectiveness Awards Grand Prix

The campaign transformed Currys from a retailer threatened by online shopping into the UK's most-preferred technology retailer, generating £500m in incremental revenue and returning the business to...

Global Brands Ditch Labour-Based Agency Fees, WFA Finds

A new report from the World Federation of Advertisers (WFA) and Agency Mania Solutions, titled 'How Brands Define, Scope and Reward Agency Work', reveals a significant shift in agency compensation models. Based on responses from 69 multinational companies with a combined marketing spend of $147 billion, the report finds that labour-based payment models, which were dominant in 2011, now represent the main compensation model for only 19% of global brands. Meanwhile, fixed-fee/output models have risen to 33%, and 'Labour + Performance' models to 21%. Performance-based fees show the strongest momentum, with 63% of multinationals expecting to increase their use, driven by AI, which is compressing labour hours. However, only 20% have evolved their commercial models in response to AI, though 61% intend to. The report also notes a shift in focus towards factors like briefing quality and trust over financial incentives.

• Labour-based payment models now represent the main agency compensation model for only 19% of global brands, down from dominance in 2011.
• Fixed-fee/output models have risen from 20% to 33% over 15 years.
• 71% of respondents were in global marketing procurement roles.

US Ad Giants Cut Ad Spending Share to 5.5%

The WARC Global Ad Trends report titled 'The cost of being seen' analyzed the advertising-to-sales ratio of 25 major US advertisers, including Coca-Cola and P&G. The analysis reveals that the average ad-to-sales ratio has declined to 5.5%. This indicates a reduction in advertising intensity among large US corporations. Concurrently, WARC Media forecasts global ad spending to increase by 11.9% in 2026 to $1.34 trillion. The report highlights a strategic shift as brands allocate budgets more efficiently, possibly influenced by economic pressures and the need for greater ROI.

• WARC analyzed 25 major US advertisers including Coca-Cola and P&G.
• The average ad-to-sales ratio fell to 5.5%.
• WARC Media forecasts global ad spending to rise by 11.9% in 2026 to $1.34 trillion.

Week in Charts: AI Shopping, Ad Spend, UK TV

This week's charts cover AI-driven shopping adoption in Saudi Arabia and India, global ad spend forecasts for 2027, UK TV ad revenue concentration, and creator influence on US purchases. YouGov data shows over half of consumers in Saudi Arabia and India use AI for shopping versus lower rates in the US, UK, and Sweden. WARC forecasts global ad spend to grow 8.4% to $1.46 trillion in 2027, with social media, retail media, and search leading growth. Sky and ITV together captured nearly half of UK TV ad revenues in H1 2026. Additionally, stock movements include Publicis' rise ahead of Q3 results, Skydance's decline post-merger, Reuters' jump after print sale, Viant's eight percent gain, and Microsoft's gain on AI chip plans.

• YouGov survey: Over half of consumers in Saudi Arabia and India use AI for shopping, versus 18% in the US, 15% in the UK, and 14% in Sweden.
• WARC forecasts global ad spend to grow 8.4% YoY to $1.46 trillion in 2027, with social media (14.6%), retail media (10.8%), and search (8.8%) leading.
• Sky and ITV combined took 48% of UK TV ad revenues in H1 2026; Channel 4 and Channel 5 made up 22%.

Global ad market grows 11.9% in 2026; print, TV weak

According to Warc Media's forecast, the global advertising market is set to grow by 11.9% in 2026 to $1.34 trillion, following 10% growth in 2024 and 2025. Key growth drivers include investments in AI and major events like the Olympics and the FIFA World Cup. Social media will see the strongest growth at 21.3% to $394.6 billion, followed by VOD, retail media, search, and DOOH. Traditional media declines: TV down 1.8%, print down 0.9%, and radio down 3.0%. Alphabet, Amazon, and Meta will capture a combined 59.7% of global ad spend outside China. The growth is expected to normalize to 8.4% in 2027 and 7.9% in 2028. AI is reshaping targeting, creative, and campaign optimization, and creating new ad environments like generative search.

• Global ad spend to reach $1.34 trillion in 2026, up 11.9%.
• Social media ad spend to grow 21.3% to $394.6 billion in 2026.
• Retail media to grow 14.3% to $202.1 billion in 2026.