Less Budget, More Focus: Advertising Reacts to the IPA Bellwether Report for Q1 2025
The UK’s post-pandemic marketing momentum has hit a wall. According to the Q1 2025 IPA Bellwether Report, total marketing budgets declined for the first time in four years, with a net balance of -4.8% of companies reporting cuts. It’s a significant shift in mood compared to Q4 2024’s modest growth and reflects mounting economic pressures facing brands as they navigate an increasingly fragile operating environment.
The drivers are familiar but no less destabilising. Rising wage costs – from the latest National Insurance increases to minimum wage hikes – are squeezing margins. Political turbulence, including Donald Trump’s tariff war, has only added to a broader climate of hesitancy. Businesses, it seems, are once again reverting to defensive tactics: cost-cutting, delaying investments, and prioritising activities that offer immediate, measurable returns.
Nowhere is this clearer than in the reallocation of spend across marketing channels. Main media advertising – the traditional cornerstone of brand-building – took a major hit, with a net balance of -6.7%. Within this, out-of-home, audio, and print all suffered steep declines, while online advertising just about held its ground. Meanwhile, direct marketing and sales promotions posted healthy gains (+9.0% and +8.0%, respectively), indicating a continued tilt towards short-term sales activation and highly targeted campaigns, often supercharged by AI tools.
Events also saw an uptick in investment (+5.4%), suggesting brands are still betting on live experiences to drive engagement. But the broader picture points to caution rather than confidence. Bellwether data showed a marked increase in companies revising budgets down due to cost pressures, with many citing a strategic shift to safeguard profit margins over brand presence.
Yet not all the signals are negative. Looking ahead to the 2025/26 financial year, more than a third of respondents (34.1%) expect to increase their marketing spend, suggesting the current retrenchment may be short-lived. IPA director General Paul Bainsfair was quick to remind advertisers around ‘short-termism’ fear, warning that sacrificing brand investment risks longer-term damage that could be harder – and more expensive – to repair.
This latest Bellwether paints a familiar, if frustrating, picture for the industry: marketing budgets are once again at the sharp end of economic uncertainty, squeezed between short-term business needs and longer-term brand ambitions.
In this context, we’ve asked various industry insiders to weigh in on what these findings mean for brands, agencies, and marketers as they plan for a rocky year ahead.
Victoria O'Brien, marketing director at 72Point
We’re seeing this shift reflected in our own client conversations – there’s an unmistakable emphasis on value, agility, and tangible impact. While the IPA Bellwether Report paints a cautious picture for Q1, we’re doubling down on the areas we know deliver results: visually led, news-ready campaigns that cut through.
From a business development perspective, we’ve ramped up our in-person engagement through community events, client roundtables, and creative workshops – because when budgets tighten, real human connection becomes even more valuable. People buy from people, and we’re proud that our approach continues to foster trust and spark ideas in ways that digital alone can’t always achieve.
This climate demands that agencies don’t just react, but lead with creativity and strategic clarity. For us, that means collaborating more closely than ever with our clients to build content that’s not just clever, but commercially smart – serving both short-term performance and long-term brand building. The appetite for meaningful connection is back – and we’re here for it.
Dan Gee, managing director/co-founder at Media Futures Market
When consumers are unsettled and sales slow, marketing becomes one of the most visible, and vulnerable parts of the business. It’s a high wire act. The only way across is balance. Quick wins yes, but also demonstrable impact over a non-immediate time frame. Our role as media specialists within creative agencies is to help clients keep the balance that's right for their objectives, and right for the story they want to tell.
When creative and media are considered together, the work performs better. There's no space for the blame game if stuff doesn't work out. Having clear objectives and unambiguous accountability is anathema to waste.
This approach also keeps the supply chain short, ensuring a clear portion of the budget is going to working media. This is resonating with advertisers. Marketers also need help describing their value internally. So we're working to equip them with data and arguments that signal the value of maintaining investment levels. And the cost of not doing so.
Back to the high wire metaphor, it’s about a steely focus on the destination, and keeping the right balance. For brands that get the wobbles, it's tough to get back up.
Elisha Pearce, chief growth officer at Iris
The first half of the year always brings hope and pressure for agencies. While growth can happen later, Q1 is critical – and often sets the tone. We’ve continued to see a shift away from traditional ATL strategies toward data-driven, performance-based approaches. This trend isn’t new, but some clients are faster to recognise the long-term strategic value these methods bring.
We don’t see this as a compromise or an either/or choice. Success lies in a holistic, multi-channel approach – one that clearly shows where investment is needed and why. Clients are under growing pressure to prove ROI to their boards, making it more important than ever to truly understand audiences and what drives behaviour.
We’ve long believed that people hold the power – and they’re increasingly tuning out anything that feels like traditional advertising. Brands must do more than just communicate; they need to participate meaningfully in people’s lives. Without this, decline is inevitable.
Agencies that will thrive in today’s landscape are those that combine strategic depth, creative agility, and channel fluency. There is no one-size-fits-all solution – only those willing to adapt and partner closely with clients to deliver impact across the full funnel will continue to grow.
Gideon Adey, client services director at UniLED Software
With the decline in marketing budgets, especially the net decrease in main media in Q1, the industry must focus on ensuring effective ad spend. Every media channel will need to prove its worth. The need for knowledge is considerably more important when exploiting a softer market.
Any agency or advertiser worth their weight in gold will be monitoring every single pound spent across every media channel. This will give them a clear and concise picture of where ad spend is effective. And more importantly where it’s been wasted.
All ROI models need accurate input data. This is not always the case. In a soft market, the difference between media planned and media delivered can be very significant. For DOOH this includes the verification of precise media delivery.
With reduced spend, comes an increase in the likelihood of DOOH over delivery if the market is not fully sold. But at the same time a greater responsibility to ensure compliance. Tracking any over delivery precisely is critical in measuring ad effectiveness.
Jim Rudall, head of EMEA at Intuit Mailchimp
The figures from the report are a stark reminder of the impact the wider economy can have on the marketing sector. ROI has never been more important and every penny needs to drive results. The question is therefore how can marketers do more with less? Above all, they must be highly strategic in how they connect with their audience. Harnessing data is key to segment their targets and tailor messaging accordingly – unlocking true personalisation at scale.
Mailchimp research reveals almost a quarter (23%) of UK consumers want to see more personalised brand marketing campaigns and, crucially, nearly two-thirds (62%) are happy to share their data if they receive meaningful personalisation in return. Over a third (36%) say personalisation stops them “missing out” on products, trends and deals – and 43% appreciate being kept up to date with limited stock or exclusive items. This ties into the notable increases in direct marketing and sales promotions observed in the report findings.
One key strategy marketers should harness to boost their direct marketing and sales promotions is SMS outreach, which offers unrivalled immediacy and impact – especially when used to complement email campaigns as part of a multichannel approach. Timely promotions or reminders such as personalised ‘annual sales’ or ‘back-in-stock’ messages are powerful mechanisms to attract attention in what is a competitive market. And after all, nobody wants to miss out on a good deal – as reflected in our Mailchimp SMS average unsubscribe rate of <0.1%.
The key is to meet consumers where they are, with messaging that feels relevant and responsive. With direct marketing on the rise for the second consecutive quarter, it is important that marketers harness the power of SMS in order to maximise ROI on their budgets in the months ahead.
Lauren Maynard, chief growth officer at FutureBrand
In the midst of economic chaos driven by external factors such as Trump’s tariffs, tougher cuts in marketing spend this quarter are unsurprising. However, marketers forecasting budget increases in 2026 tells you that businesses are expecting instability to be near-term.
The data reflects an immediate tilt towards bottom-of-the-funnel tactics such as direct marketing, sales promotions, and events. But we know from past cycles that deprioritising brand-building investments and redirecting to lower-funnel efforts may give you a short-term bump but is detrimental in the long term. If budgets must shift, they should do so with clarity on the brand attributes that matter most to customers and a plan for how lower-funnel efforts can reinforce them without diluting brand equity.
Ford’s ‘From America, For America’ promotion is a strong example – unveiled the same day a new 25% US tariff on foreign vehicles took effect, the campaign offered employee pricing to all customers. It not only boosted sales, helping clear lots and keep production lines moving, but also doubled down on Ford’s America-first positioning, delivering bottom-line impact while reinforcing brand identity at a moment of heightened consumer nationalism.
In a climate where all competitors face similar pressures, brand differentiation like this is key. The brands that show up when it counts are the ones people return to when confidence rebounds. It’s not just about surviving the storm, but building loyalty that lasts beyond it.
Phil Hall, CEO at OceanOutdoor
On the face of it, the numbers in the Bellwether Report are unsurprising. Even by the standards of our times, the last few months have been particularly turbulent. However, rather than bemoan the fact that a quarter of businesses are planning to cut spending, I’d rather concentrate on the three-quarters that aren’t. In the face of turmoil, uncertainty, a looming global trade war and resultant stock market falls, we’re still seeing brands investing in advertising. The importance of building a brand doesn’t diminish and effective advertising remains the answer.
It's not just spend that remains robust. Q1 has seen an explosion of creativity across the Ocean portfolio. After a lull in Q4, we’ve seen a sharp rise in the number of DeepScreen campaigns (aka Ocean-produced 3D OOH) in Q1 and the Ocean Labs team have been flat out working on special projects. That’s our own internal Bellwether for creativity as it signifies that brands are working hard to reach consumers in ever-more innovative ways. From Nerds dominating the Piccadilly Lights (below), to Magnum Crunch’s innovative and sound-enabled campaign on the Printworks Skylights and KFC turning the BFI IMAX into a giant pot of gravy, creativity has been a key feature of Q1. There’s a lot to be positive about.
Rikke Wichmann-Bruun, managing director, client service at Cheil UK
The latest report shows the first dip in UK marketing spend in four years. Brands are feeling the squeeze – softer sales, tighter revenues – and reacting by pulling back in places. But this isn’t panic. It’s a reset. And while caution is in the air, plenty of brands are still optimistic about what’s ahead.
What’s clear is a shift toward more targeted, performance-led marketing. Direct and below- the-line activity is back in focus – not just because it’s more cost-effective, but because tools like AI, first-party data and personalisation have made it smarter and more powerful than ever.
The challenge now is making sure these channels still hit emotionally, creatively, and on- brand. That’s where we — as agencies — need to step up and take it seriously. Clients are spending more carefully. That means we need to work smarter — being more agile, more accountable, and more focused on ideas that move quickly, flex across channels, and still land with meaning.
Creative work is becoming more modular and testable. Media is leaning hard into channels like CRM, paid search and programmatic — places where results are clear and budgets work harder.
One example: Currys working with Merkle to use personalised content that re-engaged customers and boosted acquisition, all without losing brand consistency. It’s a solid proof point that performance media doesn’t have to feel cold or transactional – it can build equity, too.
We’re also seeing more brands investing in events and sales promotions – not just because they drive short-term results, but because they offer something extra: first-party data. In a post-cookie world, these moments are gold. They help brands build direct, permissioned relationships, collect valuable insights, and create better value exchanges with customers. Done right, they convert and connect.
This shift also puts pressure on how we work as agencies. The old silos – creative here, media there, data somewhere else – won’t work long term. And let’s be honest, this is one of the hardest things to get right. Muscle memory prevails and we are seeing a real shift in both upskill, cross-skill and in building teams that can flex – fast. The strongest teams are blended:
- Creatives who get performance
- Strategists who think brand and data
- Media and CRM folks who bring creative ideas
- Data people who don’t just analyse – they inspire
And for account teams and business leads, the role is changing fast. It’s not just about
managing projects anymore. It’s about understanding the full picture – from media metrics to tech stacks – and guiding clients confidently through complex decisions. The best ones are true conductors, connecting the dots and making things happen.
More than anything, we need to democratise knowledge across roles. Not so everyone becomes an expert in everything – but so we all know enough to work better together, challenge constructively, and deliver sharper, more integrated work.
Dom Boyd, managing director at Kantar UK & Marketing Effectiveness Practice
It’s been quite the rollercoaster for businesses and it doesn’t look like we’ll be getting off the ride any time soon. Some organisations hit the panic button last quarter as the tariff threat loomed, but they need to avoid making it a habit. Brand building gives businesses options – the power to hold or to even put prices up without shedding volume or denting profit margins. Amid so much uncertainty, that room for manoeuvre is invaluable. Chopping budgets might seem like the answer now but boardrooms will likely regret it down the line. It takes time to build strong, meaningfully different brands and right now, firms in a weaker position don’t have a minute to waste.
John Barton, founder/managing director/executive director at Thumbstoppers
We’ve definitely seen clients feel the squeeze from their finance teams in Q1. But when you can’t outspend the competition, you have to out-think them. We've seen a parallel rise in new briefs from big brands under pressure to make the creative count. It feels like there's a real urgency now. With media budgets being slashed, in social at least, clients need to know their content will stop the scroll, capture attention, and drive action.
We're seeing this most in noisy sectors like alcohol, fashion, and especially with our NGO clients where attention is now the number one commodity more than ever. With the current cost of living crisis, it’s harder than ever to get people to part with their cash because for many, there simply isn’t enough of it.
We’re adapting by being surgical with strategy, doubling down on high-impact content, platform-native ideas, and social-first thinking. We’re building creative systems that flex across formats, regions, and audience mindsets. I feel that's where agile agencies offer the most value right now: not just producing assets, but building frameworks that scale and perform. The budget-slash conversation is louder than ever but so is the appetite for work that stands out.
In my view, the best agencies are helping brands think long term, maximising content yield at every single opportunity while executing fast (and actually doing it). Essentially, lazy creative can’t hide behind big media anymore.
Si Goodall, founder at The Ninety Niners
Caution in the face of chaos is a sensible strategy. In past recessions, brands were advised to spend through it and grab market share while competitors dithered. But Trump’s tariffs aren’t just another demand-side shock. They’re a rewiring of the global economy, with both predictable and unforeseen consequences for businesses and their customers. And they’re being deployed with self-serving glee by the most powerful man on the planet.
No wonder campaigns are on hold, media spend is focused on the short-term, and cheap AI content is edging out real creativity. Marketers are usually optimists, but what businesses need now is clarity. It’s time to focus on the fundamentals and for agencies to step up as true strategic partners.
With that in mind, it is disappointing to see research budgets cut by 10%. In this new economic world, brands and their agencies need to understand their customers more than ever. Being the voice of the consumer in the boardroom is still the most important job for every CMO. Staying close to the lives of real people should be non-negotiable.
Oya Mustafa, director of business development at Recipe
The numbers don’t lie, budgets are tightening. But beneath the -4.8% lies something deeper: brands aren’t losing faith in marketing, they’re losing patience for waste. This isn’t a retreat; it’s a reframe.
Clients want fewer, better ideas – things that cut through, convert, and still carry brand weight. It’s not just about impressions anymore, it’s about impact. Creative has to do more than look good, it has to work hard.
So we’ve adapted. Not by shouting louder, but by sharpening focus. What really moves the dial? Where do we double down, and what can wait?
Nothing captures this better than our recent Old Spice work, (below). We partnered with grime artist Chip to drop a diss track (not an ad) that went toe-to-toe with category clichés – an unfiltered cultural play for 15-18 year-olds who wouldn’t have touched Old Spice six months ago. It was a tonal risk for P&G, but the idea landed – organically blowing up in grime circles before any media spend even hit. Creative conviction, not just budget, made it a success.
When every penny counts, how you work matters as much as what you make. We choose collaboration over chaos, integrity over hustle. Because in uncertain times, clients need partners who bring clarity, energy, and a little audacity.
Callum McCahon, executive strategy director at Born Social
The Q1 report shows what we all feel: pressure. Marketers are being asked to prove impact today, not next year. That’s understandable. But in times of volatility, we also know that staying visible, staying consistent, and investing in brands is what drives long-term growth.
The tension between short-term returns and long-term brand building isn’t new, but it is sharper than ever. What’s changed is how we can respond. Social offers a unique space to do both. It gives brands the ability to act fast, show up in culture, and keep the brand alive in people’s minds - all while driving meaningful outcomes now.
It’s not about chasing trends or throwing money at the algorithm. It’s about using social strategically as a space where creative work can flex, adapt, and deliver. The smartest brands aren’t pulling back; they’re recalibrating, using the moment to shift away from old models and towards marketing that’s faster, more connected, and more effective. So while the headlines talk cuts, I see opportunity for brands that stay active, attuned, and agile. This isn’t just a moment to survive, it’s a moment to gain ground.
Ollie Scoot, founder/CEO at Unknown
In 2010, everyone was talking about social media being the new medium. A few things happened. But (majorly), the money stayed with the traditional agencies, who made work that ran through (majorly) traditional channels. Most of us got ‘social fatigue’. So, when we see headlines about social being the new medium, nothing has really changed.
But here’s my prediction here. – that every social agency will reposition itself as a social first creative agency. That they will lure the best and brightest brains in the industry. What will feel like stealth initially, will translate to them winning big agency-of-record accounts from some of the traditional agency holding companies. Brick by brick. Account by account. They’ll begin to rapidly scale. We Are Social will be ten times the size of Ogilvy. And that’ll be the new normal. 2010 is here.
Patrick Reid, CEO at Imagination
Q1 2025 brought a dip in overall marketing budgets – disappointing, but not unexpected given the current climate. While the short-term outlook is mixed, signs point to recovery as the year unfolds.
In contrast, the events sector remains a standout. With a 4.5% rise in spend, it’s one of the few areas showing continued growth in the latest Bellwether report. During uncertain times, brands are turning to experiences that deliver instant impact and long-term value. Events offer what few channels can – real-world connection, energy, and unforgettable engagement that builds both momentum and loyalty.
Experiences aren’t a luxury, they’re a necessity. In an increasingly disconnected world, events are proving to be one of the most powerful drivers of meaningful brand growth.
Brenda Imeson, strategy director at Brave Bison
The Q1 data paints a picture of marketers caught between caution and ambition. Budget cuts reflect a tough trading environment, with squeezed consumer spending and new tariff concerns fuelling uncertainty. Yet despite this, over a third of marketing leaders still anticipate increased investment before year-end, a sign that brands are holding their nerve.
The continued tilt towards direct and performance channels makes sense in a climate focused on measurable returns. But the sustained dip in main media spend raises flags about the future of brand equity. Short-term wins can’t come at the cost of long-term growth.
As CFOs tighten the purse strings and CMOs tread carefully, the challenge now is to prove that marketing isn’t just a cost centre, it’s a growth driver. The opportunity lies in better integration: aligning media, creative, and measurement to show the real business impact of advertising.
Christian Johansen, president at McCann Worldgroup, Europe & UK
The report highlights a shift in the market, asking provocative questions of marketers and their strategies. Against this backdrop, it is critical for marketers to harness the timely cultural immediacy of the short-term with the timelessness of consistent brand building. This is the approach we use at McCann, that has fuelled and continues to fuel some of the world’s most enduring brands. Our ‘Truth Well Told’ approach is about leveraging data and the power of radical creativity to connect with audiences in a more meaningful and of-the-moment manner to drive growth and return, which is exactly what marketers are looking for during this time of economic uncertainty.
Mitch Syrett, executive creative director at Uncovered
Economic turbulence has a direct impact on the cultural conversation: the mood of the nation moves with the markets. Agencies that can help brands navigate the multiverse of hopes, fears and feelings that audiences experience in uncertain times can keep the wheels turning and enable long-term thinking despite a short term climate.
In Q1, brands were still very much committed to brand building on social. What we continue to see is an increase in the prominence and importance of social on media plans and at the heart of creative strategies. Unilever’s increase to 50% of spend on social seems to be a totemic moment – and the reduction of overall marketing budgets will only accelerate the trend as brands look for efficient ways to drive mass reach.
Will Poskett, founder at Defiant
From Trump’s tariffs to the war in Ukraine, and the 'B' word we’re not allowed to talk about (Brexit), there’s no question we are facing a period of great economic uncertainty. It’s no surprise, therefore, that clients are seeking to cut costs to weather the storm.
Yet looking to history, there is overwhelming evidence that those who invest in brands during uncertain times, not only outperform the competition but go on to build the most valuable brands. In 2022, for example, Kantar showed that those who over-invested in brands during the 2009 global financial crisis grew almost twice as much as the S&P 500 and became some of the world’s most powerful brands.
Today, we see how the most successful brands understand this. They know that when many cut back, it can become easier to cut through. Breakthrough companies like Liquid Death, Duolingo, and Lego get this. And it's why they’re doubling down on brand.
In light of this, the most important question we’re seeing isn’t whether to cut budgets – but what to cut. Savvy clients are realising the days of big, bloated network agencies are over. Instead, they’re choosing smaller, senior, and more nimble teams. It’s why we’re seeing the rise of independents of all sizes. And it’s why, at Defiant, we’ve had our best start to the year – winning the likes of Heineken-owned Beavertown Brewery, Clipper Tea, and Bella Italia.
So in conclusion, the real question smart clients are asking themselves now isn’t whether to cut budgets, but which partners will deliver the most value for their brand.
Jonny Ray, managing director at Above+Beyond
Short term caution vs longer term optimism – feels like the story of the last 18 months rather than just Q1 2025. Whilst the doom and gloom is everywhere right now, we’ve made a positive choice to double down on the things that energise us and our clients, whilst trying to move away from the hope and goodwill legacy model of our sector.
We’ve spent time creating simpler, frictionless and flexible service packages that allow clients to plug in and adjust spending quickly, with a framework which allows them the right space for developing and forecasting brand building work alongside it.
And we’ve spent time working on how we use tech to supercharge our teams, not as the solution but as an elevator — something to allow them to get away from the admin and into spending time with brands as genuine partners. Conversing, listening, having human discussions.
We’re all in this game because we believe that we have the power to transform the fortunes of our clients and their brands. In times of economic hardship, these clients need our support more than ever, so it’s on us to offer solutions to the challenges they face. That’s the kind of work that allows us to navigate shorter term caution, whilst building brands for the future.
Alyssa Drysdale, managing director at Spin
In these challenging economic times, many brands are under increasing pressure to deliver more with less. Budgets are tighter, consumer behaviors are shifting rapidly, and the margin for error has never been smaller. What brands need from their agency partners now more than ever is more than just execution – they need a true strategic ally. One who not only understands the realities of their business pressures but can also navigate them with agility and insight. This means bringing a full-funnel mindset to the table – one that connects brand awareness, engagement, and performance seamlessly, ensuring that every pound spent is working hard across the entire customer journey.
Agility and flexibility is key – agencies must be able to pivot quickly, optimise in real time, and bring forward innovative thinking that’s grounded in data and business outcomes. A great agency partner acts as an extension of the brand’s internal team – proactive, accountable, and invested in long-term success. In uncertain times, that kind of strategic partnership isn’t just valuable – it’s essential.
Adam Clarkson, chief growth officer/founder at Trouble Maker
The Q1 Bellwether paints a sobering picture – budgets tightening, confidence wavering, all while ambition persists. This isn’t a retreat; it’s a recalibration. When brands pull back, agencies must step forward – not just as vendors, but as strategic partners who turn constraints into catalysts.
The rise in direct marketing and promotions signals a hunger for accountability. Clients aren’t abandoning growth; they’re demanding efficiency. Our role? To ensure creativity isn’t sacrificed at the altar of short-termism. Data-driven storytelling, hyper-personalised engagement, and agile media strategies will bridge the gap between immediate ROI and brand-building.
Our mantra has always been to help our partners ‘Outsmart Not Outspend™’. We think the agencies that thrive in the current climate will be those who reframe challenges as opportunities: helping clients reallocate spend with surgical precision, leveraging AI and automation to unlock efficiencies, and doubling down on channels where measurability meets impact. In uncertain times, creativity isn’t a luxury – it’s the sharpest tool in the shed.
The question isn’t if budgets will rebound, but how we position clients to capitalise when they do. Now is the moment to prove value – not through grandiose claims, but through undeniable results.
Mathias Upton-Hansen, co-founder/CEO at Blacklist
This quarter’s Bellwether paints a clear picture: belts are tightening but long-term ambition is still very much there.
When budgets tighten, the fluff gets cut and what remains must work harder, faster, and smarter. In this climate experiences win every time. They give brands the ability to inspire, engage, and convert in a single stroke.
But bold ideas require brands to be courageous, and this is where AI is a game-changer. It’s not just about automation or targeting, it’s about de-risking decisions and spending, optimising insights, predictive modelling and stress-testing concepts in real time. It’s helping brands move faster and smarter and ultimately back big ideas with greater confidence. At Blacklist, we are harnessing the latest agentic AI tools to innovate new ways to support brands to connect with audiences: meeting them where they already are, and surprising them when they least expect it.
Gareth Moss, CEO at The Blueprint
Q1 has underlined what many senior leaders have been anticipating: a tightening of budgets but not ambition. We’ve seen a shift from scale to selectivity – agencies are being asked to do fewer things, but with sharper impact. That’s forcing leaders to be more thoughtful, more commercially astute, and more creatively rigorous.
Where we’re seeing agencies thrive is through modern strategic leadership – individuals who can balance near-term performance with long-term brand building, and who can guide clients through complexity without losing creative courage. It’s why we’ve seen rising demand for hybrid thinkers: part brand strategist, part business advisor, with a clear point of view.
This is also a moment for clarity. When every pound matters, the value of strong, empathetic leadership is clear – the kind that helps clients focus, not flinch. Agencies are leaning on their best people not just to deliver work, but to help shape what’s worth doing. What’s needed now isn’t just creative problem solving – it’s courageous leadership. And those who can bring that to the table will define what the next era of agency impact really looks like.
Nick Myers, chief strategy officer at OLIVER UK Group
The Q1 Bellwether calls for neither pessimism nor optimism. It calls for realism.
Realism is recognising that budgets declining for the first time in four years aligns with economic cycles that typically bring downturns every five years (COVID in 2020 being our last). Realism is accepting that we’ll face more downward pressure on budgets in Q2 as National Insurance rises and US tariff uncertainty looms.
Realism is understanding that most CFOs and boards won’t heed our calls to maintain or increase marketing spend. Instead, we need to help clients do more with less - this is exactly why at OLIVER we’re embedding Gen AI into our in-house agencies via our Pencil Pro platform.
Realism also means acknowledging that while direct marketing is trending upward, success in this channel requires upskilling teams and remastering the art of data- driven creativity to combat the automated slop that prevails. DMA data clearly shows the medium’s effectiveness has declined over the past five years due to a creativity deficit. The Bellwether is simply calling for us to get real.
Michael Wilton, founder at ARK
Political uncertainty, tariff uncertainty, life uncertainty… Real people are worried and fighting to keep their heads above water. No one should be surprised that marketing spend is down against this backdrop.
It demands agencies fight tooth and nail for their brand partners. Fight for more people to be more creative more of the time. Fight to make every pound work harder. Fight to move quicker. Fight to be more innovative in our ideas and how we deliver real value for brands.
This is a time to be bold and confident in the power of creativity. Those that do will see disproportionate success for their brands, because they will be more relevant, more connected and more valuable to people in the real world. Creativity that brings value is everything right now. And if you can’t? Sit this one out. Time to be bold.
