UK marketing budgets are rising again. Here’s where the smart money is going

Despite a gloomy economic backdrop, UK companies are still putting money into marketing. The IPA’s Q2 2026 Bellwether Report, published in July, found a net balance of +6.9% of firms revising their total marketing budgets upwards. That follows Q1, when budgets were revised up to their highest level in almost two years.

The detail is more interesting than the headline, because it shows where businesses think their money works hardest.

What’s growing

• Events led the way with a net balance of +11.0%. In-person moments, sponsorships and experiences are clearly back on the plan.

• Video advertising hit +8.2%, its strongest reading in seven quarters.

• Direct marketing, main media and PR were all still revised up, if more cautiously than earlier in the year.

What’s being cut

"Other online" spend was revised down for the first time in seven quarters (-5.1%), alongside cuts to published brands, out of home and market research. Meanwhile, confidence took a knock: companies' views of their own financial prospects slipped into negative territory, and industry-wide sentiment fell further.

What this means if you’re planning next year

• Budgets are there, but scrutiny is higher. When confidence is shaky, every line of spend needs a clear commercial reason. Fixed scopes and visible deliverables are easier to sign off than open-ended retainers.

• Make assets that travel. The growth in events and video points to a simple idea: one strong piece of work should feed many channels. Film the event, cut it for social, use it in sales decks, pitch it to partners.

• Partnerships stretch budgets further. Sponsorships and co-branded activity let two brands share the cost of reaching the same audience. Done well, they deliver reach, content and credibility in one go.

• Don’t go dark on brand. Cutting everything that isn’t immediately measurable is tempting in an uncertain year. The brands that keep showing up tend to be the ones customers remember when they’re ready to buy.

The takeaway: this is a year to spend deliberately, not a year to stop spending. Put money behind fewer, better ideas, and make sure each one is built to work across channels and to support sales.

More on how Kyndra works: one senior team, fixed prices agreed before we start, and the person you brief is the person who does the work.