Observed Signal · Jan 16, 2026 · Industry Report · Source: ExchangeWire · Impact: 3/5 · Sentiment: Neutral
UK Marketing Budgets Flat in Q4 2025
The IPA Bellwether Report shows UK marketing budgets paused in Q4 2025 with a net balance of 0.0%, down from +3.6% in Q3. 57.4% of surveyed companies left budgets unchanged, with remaining respondents evenly split between increases and cuts. While PR and events saw modest gains, several traditional ad categories declined—out‑of‑home (-17.6%), audio (-10.2%), published brands (-6.5%) and video (-5.0%). Despite a Q4 video spend dip, digital video grew across 2025 (nearly one quarter of digital spend) and UK video sales rose ~8% year‑on‑year, driven by streaming, CTV and Smart TV home‑screen discovery. Contributors highlighted audio resilience, shifts toward measurable digital channels, increased emphasis on AI, first‑party data and clean‑room collaborations, and stronger demand for brand‑lift and ROI measurement as budgets become more scrutinised.
IPA Bellwether is a widely cited industry barometer; the Q4 flatline and channel reallocations (toward digital video, CTV and measurable online channels) signal short‑term caution and shifting media priorities relevant to advertisers, agencies and ad tech vendors.
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Key Takeaways & Evidence Grounding
- IPA Bellwether: total UK marketing spend net balance was 0.0% in Q4 2025, down from +3.6% in Q3 2025.
- 57.4% of surveyed UK companies left marketing budgets unchanged in Q4 2025.
- PR budgets recorded a net balance of +3.5%; events were +1.4% (down from +10.9% in Q3).
- Major category declines in Q4: out‑of‑home -17.6%, audio -10.2%, published brands -6.5%, video -5.0%.
- Digital video made up nearly a quarter of UK digital ad spend in 2025; UK video sales rose ~8% year‑on‑year; 'other online' budgets increased by 13.2%.
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The IPA Bellwether report shows UK marketing budgets were flat in Q4 2025 (net balance 0.0%), marking a rare ‘budgetary stasis’ during the Golden Quarter. Budgets rose for PR (+3.5%), events (+1.4%), and other online (+13.2%), while main media budgets remained unchanged. Within main media, declines appeared in out-of-home (-17.6%), audio (-10.2%), and published brands (-6.5%), with video down -5.0% in Q4 after a +6.7% rise in Q3. Analysts note a shift toward performance-led investment and shorter ROI horizons, against a subdued macro backdrop including cost pressures and geopolitical tensions. Forecasts for 2026/27 show cautious growth, with UK ad spend expected to rise around 1.5% in 2026 and 2.3% in 2027, while the 2026/27 budgets survey indicates a net +1.7% increase in planned spend. Budget discipline is seen as essential to sustaining long-term brand-building alongside ROI-focused channels.
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