The latest IPA Bellwether report has found that UK companies cut their marketing budgets in Q1 2025 by 4.8%, the first decrease in four years and a marked change from recent quarters. This suggests marketers are concerned about the long-term impact on sales of a potential global recession sparked by recent trade wars.
Such a decline is not being applied evenly, however. Surveyed brands suggested they would cut market research investment by 10.5%, following a predicted 3.1% increase in the previous quarter. Across media channels, OOH was predicted to fall by 18.9%, vs. only -1% for Video and +9% for direct marketing.
Amid the uncertainty, there are reasons to be cheerful. Despite the short-term cuts in the forecast, 36% of those surveyed expect marketing spend to rebound in 2025/26.
