“What Sort of Bright Moment Is This?” Reactions to the IPA Bellwether Report for Q2 2024
The Q2 2024 IPA Bellwether Report reveals a remarkable trend in UK marketing budgets, marking the highest level of growth since early 2014. Despite ongoing economic uncertainties, this was the 13th consecutive quarter of growth for UK marketing.
This continued surge in marketing expenditure is driven by a particular interest from brands in events, direct marketing and sales promotions. However, the report also indicates an upturn for main media budget, with a return to growth for big-ticket advertising campaigns broadcasted on television and radio.
Looking back on Q2 and ahead to the rest of 2024, LBB collected the following reactions from UK business leaders.
Paul Bainsfair, director general at the IPA
In line with the brightening economy, decreasing levels of inflation and a new government, this quarter’s Bellwether Report reveals real vim and vigour regarding UK companies’ marketing spend intentions. As we know, advertising is a lever for growth for companies and so it is great to see them capitalising on these developments.
While we welcome this positivity, it is worth noting that while inflation levels have come down, this hasn’t yet translated into prices, and as such strains on many household finances prevail. This is something we’ve seen in our recently launched 2024 IPA TouchPoints data where more than a third of consumers say they are struggling to cope on their current income. Companies would benefit from being cognisant of this in terms of their communications approach and messaging to their consumers. I suspect that those brands that can bestow their sense of value, trust and reward will fare well here.
Joe Hayes, principal economist at S&P Global Market Intelligence and author of the Bellwether Report
While a general election carries the potential to generate a lot of uncertainty and decision-making paralysis in its lead up, it seems that UK companies in the Bellwether survey largely shrugged it off as a factor to consider when assessing their marketing budgets in the second quarter, as growth jumped to a ten-year high. A strong performance by the UK economy so far this year, in tandem with falling inflation and the expectation of an imminent interest rate reduction by the Bank of England, has helped lift confidence, providing more fertile grounds for companies who wish to invest into their brands and position themselves for long-term growth.
Gill Jarvie, client services director at Republic of Media and Scotland chair at the IPA
There is a general air of optimism with the UK economy returning to growth and a new government installed so it was reassuring to see the latest Bellwether figures also going in the right direction. Even more reassuring was the return to growth for main media budgets (+3.5%) having seen a reduction in Q1. Hopefully we’ll see this momentum continue into Q3.
Richard Aldiss, chair for England and Wales at the IPA
It's great to see not only a continuation but also a strengthening of the optimism we observed in Q1’s Bellwether Report. The upturn in main media advertising budgets is particularly encouraging. While uncertainty undoubtedly remains, brands and marketeers are gaining confidence from economic and market indicators, rightly viewing this as an opportunity to invest for growth.
Alex Uprichard, managing director at IMA-HOME and city head for Leeds, Yorkshire and Humberside at the IPA
Who wouldn’t be positive about the news that UK businesses expanding their marketing budgets has risen by the highest level in a decade to +15.9% in Q2?
There was every chance political uncertainty would stagnate investment decisions, but the winds of change have clearly driven more optimistic budgeting. The continued growth of events budgets indicates that real world experience is driving strong results for Bellwether companies. We’re witnessing it first hand as an agency, creating retail activations day-in-day-out for existing and new clients.
Main advertising budgets experiencing growth is another positive indicator as we look towards planning season. We’re moving from reactionary short-termism as the economic landscape starts to stabilise and are more able to work with our clients on long term objectives, which not only future-proofs brands but the industry at large. So let’s keep going in this direction!
Sue Benson, managing director at The Behaviours Agency and city head for Manchester and North West at the IPA
Despite England not winning the Euros, we did get growth and positivity in the pages of the IPA Bellwether Report. It finally appears as if we’ve turned a corner economically and I know that my colleagues in the North West will really hope that that translates into more positive trading conditions for the next six months. Short-term activation media – DM and events – are still driving the growth, but at least we’re seeing growth in main media usually associated with brand investment. With the Paris Olympics set to bring joy to our lives and talk of interest rate cuts, I think we can begin to work with a more optimistic and confident consumer.
Bill Doris, VP analytics, EMEA at EssenceMediacom and media research advisory group chair at the IPA
The latest IPA Bellwether Report for Q2 2024 brings some good news for the market research sector. Budgets have seen a nice bump, with a net balance of +3.2%, the best we've seen since late 2021. This is a refreshing change from the previous quarters. Even with some political uncertainties, UK companies have been feeling upbeat thanks to a stronger economy, lower inflation, and the hope of interest rate cuts. While market research isn't seeing the biggest budget increases compared to other areas, it's clear that businesses value the Insight it provides. Fingers crossed this positive trend continues into H2 2024.
Patrick Reid, chief executive officer at Imagination
The events industry continues to outperform all other areas of the marketing mix, according to the latest IPA Bellwether Report. It’s clear brands continue to recognise the power of experiences as a way to drive loyalty and forge deep connections with target audiences.
With the summer of sport in full swing the opportunity for brands is significant. Brands that tap into experiences along with authentic content will be the brands that drive growth through long-lasting consumer relationships and loyalty.
Building your brand with experiences should be a priority for those wanting to navigate the ups and downs of the changing marketing landscape.
Chris Falconer, group managing director at McCann Central
It’s great to see the IPA’s Q2 Bellwether results showing an improved performance and a brighter outlook. For our part, we’ve certainly noted an increase in activity across all of our McCann Central offices and growing demand for key services particularly social, B2B, PR and media. We’ve also had a busy first six months in terms of new business and, with some big wins under our belts, we are confident about the second half of the year.
Rebecca Crook, chief growth officer at Creature & Positive
There is encouraging news from the latest IPA Bellwether Report for both brands and agencies with confidence returning to the sector. With the election behind us, a predicted ripple effect from this year’s major sporting events and a hope of a decrease in interest rates it is clear brands are gearing up to invest in their marketing activities.
However, whilst this is good news, there will no doubt be a slight delay in consumers loosening their purse strings and spending big on non-essential items. Agencies also need to be very aware that many clients are assessing and, in some cases, already adopting AI across their business and the impact that may have on fees in the future. The smart agencies will already be future proofing how they adapt their models to changing technologies.
James Kirkham, chief executive officer and founder at ICONIC
I hope this is the signal to take down the barriers, remove those hidden challenges, and embrace the growth.
The headlines speak of a record high in marketing budgets, and improving economic conditions. We as an industry need to double down and let this be a trigger for creativity, progressive thinking, and pushing us forward collectively.
We’re in a honeymoon period of a new Labour government, who speak about politics treading more lightly on our lives. As business owners and marketeers, we can spend less time in energy sapping culture wars and more interested instead in how to leverage culture in the revival of this country. Investing in our young people, unleashing our sports, arts and culture from the shackles, and spearheading a new decade where Britain can feel proud of its creative industries. “London Swings Again” was the headline in the ‘90s, epitomising an optimism and unabated creative spirit. I hope we can find this again in the second half of this decade as we did back then.
Alex Marks, head of marketing at Posterscope
Stability in OOH spend is a welcome advancement from the Q1 report which indicated a decline. What is also encouraging to see is that marketers are recognising the importance of in-person events and media, which underlines the importance of OOH as a physical media that connects the dots to others.
Jon Goulding, chief executive officer at Atomic
Finally, some positive economic signals and marketing investment optimism. The recent very one-sided and relatively uneventful election has clearly helped the market not take another pause for breath before moving forwards with growth plans. With intention at least. However the topline indicators and summary categorisation of the report mask the seismic shifts going on in terms of channel mix that continues to reshape the marketing and agency landscape. This is very positive news for those who have got ahead of the change but challenging for those awaiting an economic rebound. Overall, the outlook is positive but likely to be messy for some time to come.
Jamie Peate, global head of effectiveness and retail at McCann Worldgroup and McCann
The latest IPA Bellwether report is a positive-ish reading. We’re not out of the woods yet but there are signs that the trees are starting to thin out a bit.
That being the case, businesses and agencies alike need to be on the front foot to make the most of the better times when they arrive.
Although things will continue to be tough in the immediate and near future, clients who consistently invest in well thought-through and customer-focused creative will be in the best position when the sun starts to shine.
Lee Bokfin, chief executive officer and co-founder at Global Street Art
In terms of special out-of-home budgets, we've seen an increase in the number of options for clients at the same time as contractions in budgets; clients are often looking for highly creative solutions for smaller budgets. At the same time, there has been an increase in the number of integrated campaigns that blend regular out-of-home with experiential, influencers, etc. As Global Street Art is not only a media owner, but also helps clients gain access to culture, this year has been fruitful for us although that has been shaped differently to previous years.
Emma Harman, EMEA president at Whalar Group
It is great to see budgets are improving especially within the social and creator space. We are seeing the most effective brands on social lean into culture-led storytelling, humour, entertainment and trend-led content. This type of work on social requires long-term planning and proper investment into brand equity building. Fun is definitely back on the agenda and we are here for it!
Julian Boulding, president at thenetworkone
We should all take this Bellwether report with a huge pinch of salt.
The clue is in the chart on page two.
First, look at the black columns.
Every year the “initial marketing budget setting” shows enormous year on year growth:
+18% in 2021/22
+22% in 22/23
+35% in 23/24
+23% in 24/25.
Then look at the orange columns.
These show the actual spending change:
-3% (negative growth) in 2021/22
+4% in 22/23
+1% in 23/24.
Does anyone believe that major companies will really spend +23% on marketing in 24/25?
Marketers are optimists, but S&P should know better.
Jon Harrison, owner at One Black Bear
While the latest IPA Bellwether report indicates a positive outlook, which is very much to be welcomed, the market still remains very tough agency-side.
From talking to other agency leaders outside of the M25, we’re all awaiting the upturn to actually turn up.
A new stable government, interest rate cuts and a bit of prolonged beer garden friendly sunshine should hopefully get things moving, and people spending.
Brands need to get started though, and soon, because before you know it we’ll all be obsessing and retreating back into our wallets over how miserable things could turn across the Atlantic.
Seetal Singh, UK commercial finance manager at Momentum Worldwide
The latest Bellwether Report shows UK companies' enthusiasm for marketing spend on experiential events, driven by a brightening economy, lower inflation and a new government. Firms are seizing these growth opportunities. In turn, it’s an opportunity for us working in the industry to do some of our best work and push the envelope. Exciting times ahead!
Callum Gill, lead strategist at Rehab
The report paints a positive picture for the next 12 months of UK marketing in terms of budgets, however there are clearly external factors, not defined in the report, that will impact how this positive financial outlook actually impacts agencies. The reporting on AI in particular is a little woolly, framing it both as an opportunity and threat, while suggesting AI will undoubtedly impact budget allocation, but not how or why. It will be vital for the industry as a whole to eliminate the uncertainty in the AI conversation, this can be done through education as the report suggests, but really, it should be achieved through action. With campaigns and work where digital innovation and AI underpin delivery and execution, and are not the gimmick or hook.
Elspeth Lynn, founder and creative partner at Unbound
Ding dong. A boost of confidence and optimism in our industry is welcomed and needed.
With the post-pandemic wobbliness well behind us, clients and agencies need to be ambitious together.
Make decisions much more quickly, and action marketing initiatives that make a difference.
Though I did not vote Labour, they have a plan and are actively making changes.
The US election drama is making the UK look positively stable. And we only have to look at ‘Swiftonomics’ to see that consumers happily spend money when it’s something they want.
It’s reassuring when a report like this reflects a ‘feeling’ and makes it real.
The Bellwether does indeed chime.
Jamie Elliott, chief executive officer at The Gate
What sort of bright moment is this? Is it an England-at-the-Euros bright moment - which will signal a return to something dull and difficult to watch imminently - or a Lamine Yamal bright moment, heralding a brighter future? Time will tell, but we will take an uptick in spend not seen since the days of Cameron and Clegg. Even if right now it looks promotionally driven, it’s good to see the confidence return. It suggests confidence that the new government will be more stable, temperamentally at least, and enable plans to be invested in, things to be launched and brands to continue to be built.
Michael Frohlich, global chief transformation officer and EMEA chief executive officer at Weber Shandwick
The latest Bellwether Report indicates that UK marketing budgets are experiencing their largest boost since early 2014. This positive shift in budget allocations across all categories highlights a strong recovery and optimism among businesses regarding their financial prospects.
For communications professionals, this means more opportunities to partner and support our clients' C-Suite, utilising AI, data and analytics tools to help them make informed decisions and accelerate their growth strategies in the evolving market landscape.
However, amid increasing geopolitical volatility and political polarisation worldwide, our role in protecting and defending brands and businesses becomes even more crucial as clients accelerate their marketing investments. We will continue to deliver immediate impact through our campaigns while creating sustainable value for our clients.
Claire Lambell, managing director at Southpaw
It’s great to see a positive uplift in the Q2 2024 Bellwether Report presenting a much more ‘upbeat’ and improved outlook after a challenging few years, highlighting a greater business confidence but also demonstrating the resilience and adaptability of UK businesses.
It’s clear that whilst the outlook is significantly more positive, some uncertainty remains due to the new incoming government and ongoing geopolitical issues. We believe that the brands who will succeed will be those that continue to foster trust with their consumers, promote value and hold their nerve amidst continued challenges.
The ongoing discussions on AI as a major growth driver further reinforces the need for brands to embrace AI, if they’re not doing so already, while remaining transparent and true to their core values and their consumers' beliefs.
Ian Reeves, managing director at Flourish
The latest Bellwether report builds on the optimism for the year ahead from the 2024 Q1 report. It’s encouraging to see the growth in direct marketing budgets. The zero-party data that can be gained from this activity will prove invaluable in reducing the costs of other channels and delivering the right messages to the right consumers as brands look to maximise cut through during the busy Olympic period.
Geraldine Gaillemin, UK managing partner at The Blueprint
It’s good to see the cautious optimism we experienced from our clients and partners in H1 moving into a more confident expression of growth for our industry and the wider UK economy. This report reflects the increase we are seeing in agencies being prepared to make changes and invest in the right leadership talent. Making sure they are match fit and have the best possible team in place to capitalise on the growth to come has never mattered more.
Christianne Hamilton, head of strategy at Spring Studios
It’s fantastic to see budgets grow for UK business. But we still need to hope for a positive knock-on for consumers soon. The reality is most people remain squeezed by inflation and higher prices, so non-essential indulgences – new clothes, travel, going out to dinner, little personal treats – are still fewer and further between.
With events seeing the biggest increase in marketing spend, we continue to see the sort of engagement that audiences want from brands, post-pandemic. It’s indicative of a desire for levity and optimism.
This buoyant outlook is a moment for marketers to take advantage of, to revisit priorities and activities they may have shelved temporarily in light of economic climate. This means brands can start to position themselves for a healthier climate for both business and consumer.
Emma Norman, managing director at TMW (part of Accenture Song)
It’s exciting to see some positivity.
We’ve seen how elections can loom over decision-makers. For that to be behind us in the UK, coupled with some better economic news, suggests that the quiet confidence is well-placed.
Despite this, the world has changed, and agencies will need to prove that they can deliver impact for their clients across the entire customer experience. Those that master AI and embrace change will have a huge competitive advantage.
For now, agencies should be proud of how they’ve managed to weather the storms, and take comfort that we might be heading into slightly calmer waters.
Adam Morrison, founder at 2050 London
It feels like a long time coming for the marketing community to hear truly good economic news to act on. The temptation is to double down on the narrative of spending big and advising certain marketing teams to do more to go after growth by whipping up demand through bigger broadcast communications to appeal to the entire category. However after 18 months of encouraging clients to act defensively by spending on their brands so they can remain strong and don’t lose relevance.
I wonder if the moment is now for more agile, innovative approaches to campaigns. The big upward budget revision for events in combination with digital is interesting. Perhaps using the extra wiggle room to finally experiment with creative tactics on the customer journey; play with new channels, technologies and ideas to connect with new audiences in an increasingly fragmented world is the play. If for example AI, branded content shows, cooler events or simply activating a sponsorship better was on your mind, then this is perhaps the moment to make the business case to go for media innovation. So you have the creative learnings on the ideas that can propel growth today and into tomorrow.
Fiona Gordon, chief executive officer at Ogilvy UK
We have a combination of two factors right now boosting consumer confidence - a new Government always creates a confidence bump, and this summer it is compounded with the coming together moments of back-to-back sporting events.
As the countdown to the Olympics and Paralympics begins, what Ogilvy UK calls the Collective Economy is growing. Shared moments of hope, connection, disappointment and euphoria will further bring the country together and brands authentically tapping into that inclusivity will be the winners, no matter the result.
This Collective Economy naturally brings spending uplift for brands, hospitality and retail no matter the weather - a joy for Big Business. This adds to their new sense of certainty as Big Business now has a road map for the next four years, which allows them to make CapEx and infrastructure decisions. It is this combined momentum that is driving the CMO and C-suite agenda. Leaders are able to focus in again on what is vital for business to really drive economic growth, whilst also delivering on their brand promise to customers and partners - being zealous about makes them consistently distinctive.
Chris Ambidge, commercial director at Collaborate Global
It’s always good to see a positive continued growth headline. And even better to see continued brand investment in events and experiential.
Marketers are looking to win in the “attention economy” and realising the value of a 15-minute dwell time vs. a three-second doom scroll, bringing new and existing customers to IRL experiences, dripping in brand quality, emotion, innovation, and intrigue .
Winning brands are fusing digital and live activation campaigns to build stronger trusted links to the brand for greater reach and legacy. It’s an opportunity for new growth.
Looking forward, we’re seeing a quiet confidence – as brands take stock of the reality of constraints on people’s purchasing power – moving swiftly to engage in moments that matter.
