IPA Bellwether survey paints a grim picture for UK main media
When the going gets tough the tough…run for cover, might be the motto of the world’s marketers despite being forever told that they should market their way through a downturn.
The latest UK IPA Bellwether report shows a net balance of -4.8% of firms cut their marketing budgets in Q1 2025, a marked shift from the previous quarter which recorded growth with a net balance of +1.9%. Just under a quarter of panel members reported a reduction in their marketing budgets (24.2%), compared to 19.4% indicating an increase. The survey says “anecdotal evidence suggested that declining sales and reduced revenue led to a reallocation of marketing spend.”
More likely is doom and gloom on both the domestic and international fronts. UK chancellor Rachel Reeves’ car crash of a budget (at least as far as most businesses are concerned) with employers National Insurance rising sharply in April, among other increases, followed by the dawning realisation of the disaster called Trumponomics on the international stage, will have curbed the enthusiasm of even the most optimistic marketer. CFOs across the board will have been hoarding cash.
As ever some media suffer more than others.
Performance marketing has clearly become the norm in the UK. Past, more upbeat surveys have still shown that main media – the old mainstays of TV, press and posters – have been the main victims of the performance-based (supposedly) digital tidal wave and that remains the case. In an overall declining market that’s likely to lead to job losses and company closures.
Is there light at the end of a pretty dark tunnel? Report author Maryam Baluch, economist at S&P Global Market Intelligence, says: “In spite of considerable macroeconomic headwinds for businesses, the Bellwether survey does provide some evidence of resilience among UK marketers. While the opening quarter of 2025 saw overall marketing budgets revised downwards, surveyed executives remain optimistic about the future on balance.
“Over 36% anticipate an increase in their marketing spend for the 2025/26 period, reflecting businesses’ commitment to driving growth and sales through volatile trading conditions. Increased budgets for direct marketing, events and sales promotions indicates a proactive and agile approach to overcoming these challenges.”
Some light for some then. But the outlook for main media (according to this survey anyway) is grim verging on grimmer. And we haven’t seen the real impact of the Trump tariffs yet.
