The media budgets of U.K. advertisers are set to rise over 7% in the first quarter of 2026, despite worries over supply-chain disruption and low consumer confidence.
It’s a sign advertisers aren’t acting to pull or pause media investment in the face of slow economic growth prospects, increased tariffs on goods exported to the United States, or the rise in energy prices prompted by the recent war between the U.S. and Iran.
“The trend, I would say, has been more positive than you would expect based on what’s in the news,” said Chris Woodward, executive director at Brandtech shop Oliver.
According to the quarterly Bellwether survey published by the Institute for Practitioners in Advertising (IPA), U.K. brands are set to increase their media spending by 7.3% over the current quarter (Q1 begins in April, per British convention).
U.K. advertisers spent over £40 billion ($54 billion) last year, according to analysis by the IAB UK.
A survey of over 300 British marketers, this quarter’s report is the first indication that ad spend might hold firm in the face of geopolitical pressures facing advertisers – namely the recent war between the U.S. and Iran, and the subsequent closing of the Strait of Hormuz. The survey was conducted between March 2-24.
“Who knows what the future holds, but ‘investing through volatility’ will always hold true,” said Kimberley Upton, head of effectiveness at integrated agency Zeal. “The smartest players are balancing brand and activation to protect share now while pricing power recovers.”
More than a quarter (28.6%) of respondents said they were more optimistic about the financial outlook of their business than they were three months ago, 0.6% more than those that said they felt negatively about their company’s prospects. The previous edition of the survey found that only 17.2% were optimistic, suggesting a turnaround in expectations within recent months.
The findings defy an otherwise gloomy outlook for the British economy. The International Monetary Fund (IMF) warned this week that the U.K. was particularly vulnerable to the impacts of a global recession, should the current stalemate continue. The IMF revised its expectation for U.K. economic growth down from 1.3% to 0.8%, while S&P Global Market Intelligence cut its GDP forecast by 0.3% to 0.5% for 2026 in March.
Paul Bainsfair, director general of the IPA, said the findings “signal a bullish start to the year for U.K. marketing investment” and suggested that marketers had learned to maintain brand spending through economic shocks based on the experience of recent years.
“The evidence is being heeded, even in tougher conditions, [that] cutting back on advertising risks long-term damage. It is therefore welcome news that U.K. companies are holding their nerve and investing to stay front of consumers’ minds, strengthen their brands and drive future growth,” he said in a statement.
Nidhi Shah, global business analyst at WPP Media, said that the pressures on consumer spending and business costs could be driving marketing spend.
“We anticipate that as consumer spending becomes more constrained and businesses prioritise protecting sales and market share, there will be a heightened focus on marketing that clearly demonstrates brand value and builds authentic trust with audiences,” she said in an email.
Though the survey showed budgets rising overall, channels considered safer options by marketers took the lion’s share. Spending on online video increased 5.7%, while investment in direct marketing rose 3.6%; channels at the periphery of media plans, like audio and out-of-home, saw decreases of 3.4% and 11.3% respectively.
Publicis Groupe CFO Loris Nold described a similar pattern during the company’s Q1 earnings call with analysts this week. “Clients are prioritizing solutions that drive measurable outcomes and efficiency,” he said.
Early signs from agency holding companies appear to back the IPA’s findings. The British market accounted for 9% of Publicis’ $4 billion net revenue in Q1, and the Groupe recorded 6.2% organic growth in its most recent earnings.
Meanwhile, Havas saw European organic growth rise 1.1% on the same period in 2025 (the company doesn’t break out figures for the U.K. specifically).