Bellwether Q2 Reactions Show Brands Need to Be Planning for the Long-Term

The Bellwether Report for Q2 was published on Thursday July 16th, and while there are certainly reasons to be cheerful it is not an overtly optimistic outlook. UK companies have revised their budgets up to the second-highest level in two years, although the net balance of those that increased their marketing spend dipped slightly compared to Q1 (+6.9% in comparison to +7.3% for the last quarter).

Once again events are leading the way as the category with the greatest marketing investment, with a net balance of +11%, however it should be noted that this is a slight dip from the +14.7% of Q1. This is a trend that played out across direct marketing, main media advertising, and PR, which all recorded modest growth slightly down on last quarter’s growth. Out of the five tracked sub-areas in the main media segment, video was the only one that recorded growth, reaching a seven-quarter high of +8.2%. Budgets for audio were stable, while the other three all saw drops in their spending.

Experiential marketing and events are continuing to see huge successes, as brands and consumers alike are recognising the value of being in the room and prioritising collecting experiences over products. This trend coupled with the added investment in video points to a desire for content that feels more memorable and meaningful, as long-form and considered content fights back against AI slop and shorter attention spans.

The Bellwether may show an understandable caution to commit too much to marketing spend, but there are rewards to be reaped for those focusing on long-term growth rather than satisfying short-term demands. According to industry leaders, prioritising building a recognised and trusted brand should be the goal, even though it may be some years before the pay-off becomes immediate.

We gathered these responses from a selection of industry voices looking back at Q2 and ahead to the second half of the year and beyond.

Sarah Logan, head of GTM, EMEA at Intuit Mailchimp

The latest IPA Bellwether Report is another strong vote of confidence in marketing. A second consecutive quarter of budget growth - and the second-highest investment levels in two years - shows that, despite ongoing economic pressure, businesses continue to recognise marketing as a driver of growth rather than discretionary cost.

It is no surprise to see direct marketing amongst the biggest investment priorities, as brands increasingly look for channels that deliver relevance, immediacy and measurable impact. Importantly, direct marketing plays its strongest role when part of a wider omnichannel approach that collectively maximises reach, builds stronger connections with customers and ultimately accelerates growth.

According to Intuit Mailchimp’s ‘Art of the Opt-in’ report, a similar proportion of consumers have opted into a brand’s email list (67%) as they have into a brand's SMS list (56%) over the last two years. Moreover, 83% of businesses now report having an SMS list, and investment in SMS matches email nearly one-to-one with about 9 in 10 businesses reporting moderate to significant investment in each. With direct marketing continuing to show its value, those that build strong omnichannel foundations now will advance ahead of the competition for consumer attention in the future.

Beyond tactics specific to marketing channels, there are other lessons we can learn from the latest IPA Bellwether figures. For example, sales promotions saw an uptick in budget availability during Q2 but it was modest. This reflects findings from Intuit Mailchimp research that more than a third of consumers (39%) are overwhelmed by the number of sales and a quarter (25%) actively avoid big retail events - according to the ‘New E-Commerce Calendar’ report.

Today’s customers are more discerning than ever. That means marketers must create authentic content that showcases a brand's values, culture and personality - delivered through transparent communication, honest messaging and a commitment to delivering on brand promises. It is these areas where marketers must re-focus their budgets for the quarter ahead, in order to see business growth.

Matti Yahav, chief marketing officer, Fiverr

The most interesting thing in the latest IPA Bellwether report, is where marketers are choosing to put their money.

Events and PR are growing because, in a world where anyone can generate almost unlimited content, people are looking for something real. They want trusted voices, shared experiences and communities they can be part of. AI can help us make more, but more content does not automatically create more attention or more trust.

The same is true for creativity. AI has made it faster and cheaper to turn an idea into a video, an image or a campaign. On Fiverr, demand for AI video creation in the UK has risen by 21%, following a 66% increase last quarter. At the same time, UGC video has risen by 41% in the UK. That tells us businesses want to create more content, faster, but they still need creators who understand the audience, the platform and what feels authentic. Businesses are clearly embracing these tools, but the technology is only part of the story.

What matters now is the human work around it: the idea, the taste, the judgment and the understanding of the audience. AI can produce ten versions of something in the time it once took to create one. The marketer’s job is deciding which one is worth putting into the world.

That may also explain why video is growing alongside investment in PR and events. Brands need to create at speed, but they also need to build relationships with people.

Patrick Reid, chairman and chief executive officer of Imagination

The latest Bellwether findings reinforce what we're seeing across the market. Experiential marketing has become a strategic investment rather than a discretionary spend. Even amid ongoing economic uncertainty, brands are prioritising live experiences because they deliver measurable commercial value and create lasting brand impact.

We're also seeing growing momentum behind permanent and repeatable experience platforms, from brand destinations to recurring event programmes, which reflect consumers' willingness to invest in meaningful experiences.

While AI accelerates the production of digital content, live experiences are becoming even more valuable as a source of authentic, human stories that fuel organic social engagement and influencer activity. The businesses placing experiences at the centre of their marketing strategy are positioning themselves for stronger, more sustainable growth.

Claire Lambell, managing director at Southpaw

The latest Bellwether results suggest brands are becoming more selective, not less ambitious. Video’s growth (+8.2%) alongside the decline in short-term online activation (-5.1%) signals a renewed focus on ideas that build memory, distinction and long-term brand value, rather than simply chasing the next click. Events (+11.0%) reinforce the importance of real-world connection, but the real opportunity is turning those moments into cultural platforms that travel far beyond the event itself through communities, creators and earned conversation. We’ve seen this first-hand with our work with e.l.f. Cosmetics, where the most impactful work hasn’t been about creating a moment, but creating participation and belonging around a shared cultural idea. For challenger brands especially, growth comes from outsmarting, not outspending, finding sharper insights, showing up authentically in culture and building communities that advocate on your behalf. While marketing budgets are at a two-year high, optimism has dropped to -25.1%, which means bold creative needs to be positioned as a growth strategy, not a risk.

Stephen Jenkins, managing director and founder at Too Many Dreams

This is a cautiously optimistic Bellwether for PR as a whole, but I wouldn't break out the champagne just yet. Speaking to many peers across the market, it’s clear the delays and hesitancy to commit during the start of this year were a common theme, and that backdrop remains. However, it's very promising to see marketing-director backing for PR given the multifunctional ways our discipline can meet their objectives and we move into what looks like a much busier and brighter H2 for 2026.

Nichola Elgie, senior account director at Drummond Central

The headline figures suggest marketing budgets are holding steady, but I'd question how reassuring that really is. Look closer and it's events spend driving the growth for a second consecutive quarter, with online video the only main media channel seeing a meaningful uplift. That pattern suggests brands are optimising for short-term visibility and AI-discoverability (given how much LLMs pull from platforms like Reddit and TikTok) rather than building something that lasts.

It's exactly why we push clients to think beyond the next reporting cycle: what does this brand need to do right now, but also what does it need to still be doing in two, five, ten years' time. Chasing short-term signals at the expense of long-term brand equity is a trade-off that tends to catch up with you. I'll be watching Q3 closely to see whether this starts to correct.

Kate Cox, CEO at Bray Leino

The Bellwether report reflects what we're seeing every day. Businesses are navigating uncertainty, but they're still backing marketing that creates long-term growth. That's encouraging because it's exactly where Bray Leino thrives. We've always believed the strongest brands invest through and capitalise on change. They don't retreat from it. The continued rise in in-person activities, the renewed focus on brand-building, and the recognition that AI is powerful when coupled with smart human creativity and judgement all play to our strengths. We've built an agency around helping ambitious businesses grow whatever the climate. Markets will always change. Great brands are the ones that optimise alongside that change.

Chris Ambidge, chief client & commercial officer at Collaborate Global

The Bellwether findings reinforce something we've been seeing with clients for some time. When confidence is under pressure, marketing investment doesn't disappear. It becomes more selective.

It's no coincidence that events continue to lead budget growth. Brands are looking for fewer, better moments to build reputation, generate demand and create measurable commercial impact - all at the same time.

We’re living in a world where attention is fragmented. In real life, experiences have become one of the few places where brands can genuinely cut through. They don't interrupt people. They invite participation. They create moments we remember, share and talk about long after the event itself.

What's encouraging about this Bellwether is that it suggests businesses are taking a longer-term view. Brands that emerge strongest from uncertain markets rarely disappear from view. They're the ones that continue investing in experiences building emotional connection alongside commercial performance.

Marketing has spent years optimising what people click. The next wave of growth belongs to the brands that understand what makes people stop, stay and participate.

Fergus McCallum, CEO at TBWA\MCR

Q2 showed a further upward revision to total marketing budgets and investment in long-term brand building. But the latest Bellwether Report also shows that marketers are collectively holding their nerve – and only just. Uncertainty feels like a constant right now as predictions of positive financial health show a marked decline, particularly at a market level. What struck me most was that in terms of financial prospects, 36.5% of panellists expect a deterioration in industry-wide conditions, more than three times the share that anticipate improvement (11.4%). History tells us that those who play the long-game win through, so the next Q3 Report will be enlightening to see if CMO nerve holds in the face of inevitably increasing CFO pressure.

Richard Exon, co-founder of Joint

The most encouraging takeaway from this quarter’s IPA Bellwether Report is around where marketing investment is going. At a time when economic confidence is low, it’s encouraging to see marketing budgets holding up: those brands that invest in long-term brand building will most likely be the ones to enjoy growth. While uncertainty can steer businesses towards shorter-term decisions, sustainable growth rarely comes from playing it safe or looking like everyone else. The resilience reflected in these figures suggests that many marketers continue to recognise the value of building brands that are memorable, meaningful and different. That’s what drives long-term commercial success.

Dan Gee, co-founder and chief strategy officer at Media Futures Market

Against a backdrop of uncertainty and low confidence, there is perhaps surprisingly renewed commitment to brand building. That is translating into more deliberate media choices. Strong video investment, sustained events spending and decline in ‘other online’ advertising suggests marketers are becoming more discerning, rather than following platform momentum.

The move towards video, events and other high-craft activity makes sense. Buying decisions develop over months, and audiences are responding to more visceral forms of content with what Lea Karam has called attention filtering prompting a move away from generic slopvertising. Integrating media into the creative process from the outset makes this easier for brands.

Lucy Doubleday, managing director at We Are Social

The latest Bellwether report suggests that marketers are embracing long-form, serialised storytelling and turning away from short-term, algorithmic content: brands are realising that feeding the algorithm in a scattergun approach just creates more digital noise. Instead, the focus must be on entertainment value, craft and cultural impact. Our work with adidas on ‘Chasing 100’ perfectly illustrates this - a deep dive into the athletes, tech, and the mission that left audiences feeling like 13 minutes wasn’t enough. Content doesn’t have to be long-form to make an impact of course, but being erratic on social and chasing every viral moment is not an effective strategy. Brands today need a clear point of view and a relevant voice to stand out.

Peter Reid, global CEO, MSQ

Underneath the apparent positive signs of budget increases, this quarter’s report actually suggests a lot more uncertainty. When you consider the contrasts between short-term budget increases and the more pessimistic company views of their overall financial prospects, it indicates that any of those budget increases are fragile and uncertain. I think we’d really need a sustained and improved picture in the business confidence column before we can expect a sustained increase in marketing budgets in the medium term.

And whilst it’s interesting to see video budgets surge, we’re finding the brands who are being truly innovative and successful are taking time to connect their activities all the way through the marketing funnel. That means investing in brand building, storytelling and great craft, but also making better use of data and AI, and building better conditions for conversion further along the journey as well.

Jodie Gillary, head of brand activation at Kantar UK

It's great that budgets are holding but for me the more interesting question is: how is AI driving these decisions? LLMs are upending how consumers discover and buy from brands, and getting return on marketing spend will rely on winning with both people and machines. Blindly going 'social first' won't cut it anymore - we know LLMs don't tend to source from TikTok or Instagram. Earned media, meanwhile, is really moving the needle on brand strength, reaching man and machine by drumming up conversation and positive reviews. We're seeing marketers starting to get to grips with what AI means for their brand building strategies, but the reality is that this will look different for each business, depending on the brand, its target market and what LLMs they're using, so it's important to get the right intel to make sure investment is really delivering effectively.

Michael Pring, global client & development director and country head, Singapore at Verve, The Live Agency

It's encouraging to see marketing budgets continuing their upward path in Q2, building on the positive signs in Q1 and despite the ongoing economic and geopolitical uncertainty. Signs are that marketers are now more confident investing in the long term as well as seeking out more immediate opportunities. It's perhaps not surprising then, that events is the strongest performing sector in the latest Bellwether report. Events and live experiences can straddle both the short and long term - delivering immediate outcomes as well as building brands, relationships and growth opportunities for the future. This is a strong indication that experience has evolved from a tactical campaign channel into core marketing infrastructure.