UK companies cut their marketing budgets in Q1 2025, according to the latest IPA Bellwether Report.
The quarterly report found that 24% of respondents on the IPA’s panel saw their budgets fall, compared to 19% who saw them remain the same.
Main media spending was particularly hit, with a net balance (people reporting an increase minus people reporting a decrease) of -6.7%.
Out-of-home (-19%), audio (-11%), published brands (-8%) and video (-1%) all also saw contractions in spending.
However, there were areas of growth. Online advertising had a net balance of 1%, direct marketing 9%, events 5% and PR 3%.
Sales promotions saw an increase of 8%.
Paul Bainsfair, IPA Director General: “In the face of President Trump frequently overturning political and economic norms, it’s understandable that more UK businesses have adopted a cautious, ‘wait and see’ approach to marketing spend this quarter. Even before the introduction of US tariffs on 2 April (thankfully now paused), the anticipation alone – combined with rising costs from National Insurance increases and the minimum wage hikes – was already influencing budget decisions.
“We’re seeing a familiar pattern emerge in these challenging times: increased investment in short-term sales promotions and cuts to main media budgets. While these adjustments may offer immediate relief, they are not a sustainable path to long-term brand growth. That’s why it’s encouraging to see that, when looking ahead to annual marketing budget plans, many businesses are preparing to reinvest in main media, demonstrating a continued belief in the importance of brand building, even in uncertain times.
“It is also noteworthy that revisions to direct marketing budgets remain firmly in positive territory, reinforcing last quarter’s insight that AI is playing a growing role in enhancing both the personalisation and efficiency of this medium for UK companies.”
