Overall marketing budgets for Q1 2025 fell for the first time in four years, the latest IPA Bellwether report reveals, but events were among the categories that saw an increase.
The report, based on a survey of 300 top UK marketing directors, found that more British marketers revised budgets downwards in the first quarter of this year than increased them.
Almost a quarter (24.2%) reported having reduced marketing budgets, compared with 19.4% who increased them – a net balance of -4.8% compared with the previous quarter which recorded growth with a net balance of +1.9%.
Despite the overall downturn, some categories saw growth, with direct marketing leading the way. This category experienced a solid budget expansion, with the net balance rising to +9.0% (up from +5.6%).
Budgets were revised higher for events and PR at +5.4% and +3.4% respectively – although the expansions recorded for both were weaker than in the previous quarter.
While the opening quarter of 2025 saw overall marketing budgets revised downwards, surveyed executives remain optimistic about the future. Just over 36% of respondents expect an increase in their total marketing budgets, roughly double the 17.8% who foresee a decrease.
Events looks set to lead the race for the coming year: a net balance of +16.6% of companies reported plans to increase event spend for 2025/2026 budget plans, making it the category with the highest level of optimism.