by Shea Brennan, Insight
The IPA has released its latest Bellwether report into spend in the UK advertising industry for Q1 of 2026. The report, which is always hotly anticipated, uses trended spend data for individual channels to forecast future growth and decline. While providing a macro view of the industry, this report can also arm marketers with clarity on future media opportunities.
The headline stat is that marketing budgets are on the rise, increasing by +7.3% in Q1 2026, compared with 0.0% in Q4 2025. Without accounting for channel-specific trends, this rise is significant considering the current geopolitical and global economic uncertainty that has so far plagued 2026. The steep rise indicates that the oft repeated saying that: ‘When times are good you should advertise, when times are bad you must advertise’ still holds true; with consumers keeping their pockets tight, brands are dipping into their own to maintain salience.
Going deeper, at a channel level the outlook is more complicated. Video and online advertising are driving spend growth as both areas recorded increases of +5.7% quarter-on-quarter. However, the proportion expected to be spent on published media brands has declined, reflecting that the growth in spend is not one-way traffic This likely indicates that budgets are being funnelled into a broader set of performance-driven channels, while brands continue to focus on AV as a brand building channel that communicates trust and fame. As consumers’ purse strings tighten, building trust with audiences becomes even more important to retain their loyalty. This will only heighten if wage growth continues to struggle to keep pace with inflation.
As media investment returns to growth, so too has positive sentiment among many adlanders. Recent data from the Drum indicates that confidence levels have rebounded within the industry, with the proportion feeling positive about their role going from -19.0% in Q4 2025 to +0.6% in Q1 2026. This highlights that, despite the economic pressure faced by consumers, advertisers stand ready to face the challenge.
While the industry is in a more positive mood, this did not translate into how those who work in the advertising industry feel about the wider landscape. Industry-wide sentiment still stands at a negative -21.0%, although this is the highest reading in 5 quarters. This tells us that the wider macro-economic environment is still expected by many to worsen and have a knock-on effect on the advertising industry, but individuals are expecting their own businesses to weather the storm.
The latest IPA report showcases strong results for the advertising industry but still urges caution amidst the positive headlines. Overall, the industry is performing strongly, but there is an underlying sense of concern, predicated upon the virulent and volatile times in which we live. Moreover, on a channel level, it is important to note that spend increases are not universal, with traditional channels continuing to decline. This points to a shifting advertising landscape overall, but what is certain is that spending on advertising is currently seen as a critical necessity rather than a nice-to-have by businesses.
