In Q1 2025, marketing budgets saw their first decline in four years, with a net balance of -4.8% reported in the IPA Bellwether report. Many companies shifted their budgets in response to declining sales and economic uncertainties. Despite this downturn, categories like direct marketing and sales promotions experienced growth. Future outlooks remain optimistic, with over 36% of marketers planning to increase budgets for the 2025/2026 period, particularly in events and direct marketing.
"Despite Q1 2025 recording the first dip in marketing budgets in four years, the overall outlook remains optimistic, with over 36% of executives planning increased funding next year."
"The IPA's Paul Bainsfair highlighted that political and economic uncertainties, including new tariffs and minimum wage hikes, impacted budget decisions across the marketing landscape."
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