UK companies have revised their marketing budgets upwards at the strongest rate in more than two years, according to the Q3 2026 IPA Bellwether Report published on 15 October. A net balance of +14.3% of firms raised spending in the quarter — 25.6% increased budgets against 11.3% that cut them — marking the third consecutive quarter of growth and the highest reading since Q2 2024.
The standout feature is breadth. In a rare outcome for the survey, every single one of the seven Bellwether categories recorded upward revisions. Public relations led the pack with a net balance of +15.3%, a series high extending its run of upward revisions to 13 quarters. Events slipped to second place but still hit a nine-quarter high of +15.1%, while sales promotion surged to +13.1% from +0.9% in Q2, closing in on the record set in Q2 2023. Main media advertising jumped from +1.5% to +9.8%, its strongest uplift in nine years, with direct marketing and market research each posting +5.2%.
Main media breaks a six-year pattern
The details inside main media matter most for planners. For the first time since the five subcategories began being tracked in early 2020, growth was positive across the board. Other online led at +17.2%, rebounding sharply from -5.1% in Q2. Video reached a two-year high of +9.8%. Out-of-home returned to positive territory at +3.6% — its only positive reading in the survey’s history. Audio and published brands recorded modest but renewed increases of +1.1% and +0.8% respectively, the first time budgets were not being shifted between channels but rising overall.
Forecasts upgraded, confidence still mixed
The Bellwether’s data feed also improved the official outlook. The IPA upgraded its UK advertising expenditure projection, with S&P Global Market Intelligence now expecting 2.8% growth in 2026, revised up from 2.1%, followed by 1.3% in 2027 and 2.4% in 2028. Omnicom Media chief market analyst Bhavin Balvantrai noted the resilience of UK advertising confidence, pointing to advertising effectiveness as a key rationale brands are giving for continued investment.
The caveat for media buyers is confidence. Company-level financial prospects remained pessimistic at -2.7%, albeit improved, while industry-level sentiment stayed deeply negative at -20.3%. Marketers are spending despite the gloom, not because it has lifted. With the government’s autumn budget approaching and the golden quarter for client investment under way, the question is whether the momentum can carry into 2027 — the trade consensus in global ad spend forecasts and agency holding companies alike is that growth is real but fragile.
The full breakdown is available in the quarterly Bellwether survey.
