In light of the insights revealed by the latest IPA Bellwether Report, what should marketers bear in mind as they lean into 2025? We asked experts from across the ad tech industry. 

Rewinding to the final quarter of last year, the latest IPA Bellwether Report shows an upturn in advertisers’ confidence, with marketing budgets seeing a rise. The increase follows a flatline in ad spend during Q3 2024, the only quarter from the past 15 which did not register upward revisions. 

Yet, marketers remained cautious, amid a continued tough economic climate and changing political landscape. Despite the upturn, the figure was the second-lowest recorded since the start of 2021. “The post-Autumn Budget rebound was a shallow one, indicating that companies trod carefully,” explains Joe Hayes, principal economist at S&P Global Market Intelligence. 

Over a fifth (21.7%) of panellists reported a rise in their total marketing budgets during Q4 2024, while 19.9% made cuts, resulting in a 1.9% net balance increase. Main media advertising dropped 4.3%, while events boosted the total figure with a 12.3% increase. PR and direct marketing also saw steady growth. Looking further into main media’s categories, audio saw the most dramatic decline with a net balance of -17.4%. Out-of-home achieved a net balance of -12.8%, while video sat at -10.7%.  

The picture looks fairly positive as we look ahead to the rest of 2025 and on to 2026, with over a quarter of companies planning to increase ad spend. Direct marketing appears set to catch up with events, according to marketers’ intentions for the near future. 

It’s time for publishers to take control of their data

Despite broader economic challenges, there is much to be optimistic about as we look ahead to 2025. It is unsurprising that brands are being cautious this quarter, but with strong budget revisions for digital advertising expected throughout 2025 and 2026, this is the moment for the industry to prioritise durable advertising strategies. 

This isn’t simple, though, as the current state of the advertising ecosystem continues to look uncertain. Reach has collapsed, plus cookies are almost non-existent and likely to further deplete following Google’s user choice update, so brands must be innovative. To overcome these challenges and reach the right audiences, they must make planning and buying decisions based on strong first-party data, and publishers need to be on hand to provide it.

Given the decreased spending on media brands, it’s time for publishers to take control of their data and start utilising it effectively. Now is the moment to place curated privacy-forward signals at the core of programmatic transactions and embrace the power of strong collaboration. In doing so, brands and publishers can expect to see increased demand and higher revenue, ensuring long-term success across the board. 

Elizabeth Brennan, GM Advertiser, Permutive

We need to learn how to decouple growth from increased emissions

Whether because they want to, or they have to, many agencies are learning towards a “do more with less” philosophy. While this sentiment has primarily been inspired by budget pressures, the same is true for climate pressures: we need to learn how to decouple growth from increased emissions. As budgets slowly rise, guided by this drive for efficiency, more and more agencies will realise that budget efficiency and carbon efficiency go hand in hand. This is why it’s encouraging to see so much excitement around AI; through this technology, we can identify carbon-optimised and KPI-friendly supply paths and inventory at the touch of a button. Convenience and cost have historically been barriers to carbon optimisation, both of which are eliminated by AI. 

Michael Hanbury-Williams, UK MD, Greenbids

High street retailers didn’t have a brilliant time

The increase in ad spend in Q4 is no surprise. Black Friday and the Christmas period were no doubt the main cause, with brands investing heavily in targeting the active audiences the festive season always delivers. 

What’s interesting is that high street retailers didn’t have a brilliant time, with footfall down in physical stores. It seems shopping has shifted online with brands now doubling down on omnichannel to capture consumer attention where it matters most. It’s an important trend that is likely to shape advertising strategies through 2025 and beyond. 

Looking at the year ahead, the outlook for the industry is mixed. The economic and political climate will undoubtedly play its part. With the measures announced in the latest Budget speech taking effect in April, businesses may cut back on ad spend to cover additional costs. It’s a similar story internationally too, as the talk of Trump increasing tariffs could result in UK brands reliant on US exports scaling back. 

CTV will continue growing, but the market is getting harder to penetrate. Every passing week there’s more content available and the likes of Netflix are investing heavily in live sports and entertainment which may prove a game-changer. What’s safe to say though, is that brands really can’t afford to ignore the medium any longer.

Ellie Lane, Head of Client Strategy, Quantcast

Buyers need scalable options

The latest bellwether report casts a light on tension between available budgets and the need for global personalisation. While these ideas may have previously conflicted, buyers are leaning into automated solutions that satisfy both interests.

With the continuing challenge of signal loss, buyers need scalable options that don’t involve chasing a smaller pool of accessible inventory and likely paying more. Instead, a multi pronged approach with curation at the heart will drive success. Curated audiences, whether they’re “off the shelf” or custom, deliver precision targeting while maintaining scalability, ensuring buyers can reach the right consumers without compromising on brand safety.

Joseph Worswick, VP EMEA, Global Head of Sustainability, OpenX

Businesses should prioritise efficient, transparent platforms

The Bellwether report suggests a resurgence in UK marketing budgets in the final quarter of 2024 after earlier caution tied to the Autumn Budget. While cost challenges persist, optimism is evident, with many brands and media owners planning to boost their budgets.

Commerce media, Connected TV (CTV) and Curation are set to drive innovation and growth. Retailers are fuelling the advance of commerce media by leveraging programmatic technology, sponsored listings, and audience data. CTV's maturation brings greater collaboration and programmatic confidence. Together, these channels offer renewed opportunities in the new year. Programmatic curation modernises traditional advertising through smart automation – letting buyers precisely select and organise inventory, integrate rich audience data insights, and maintain control over their campaigns. To thrive, businesses should prioritise efficient, transparent platforms that enable more effective supply chains on the demand and supply sides while leveraging curation to enhance digital advertising effectiveness.

Emma Newman, CRO EMEA, PubMatic

Now is the ideal time for marketers to make strategic investments

Although the latest IPA Bellwether report has a cautious outlook, there’s a growing sense of economic relief, especially with the recent news of UK inflation slowing. Now is the ideal time for marketers to capitalise on the increased budget and make strategic investments – particularly in technologies that can minimise media waste and maximise effectiveness. 

In the increasingly fragmented digital landscape, with over 100 significant identifiers now operating, advertisers need advanced solutions to cut through the complexity and maximise addressability. This includes technology that provides the transparency and control to optimise targeting, from curated deals, contextual to audience and retargeting, ensuring IDs work harmoniously across diverse platforms. This will drive broader reach, higher performance and more substantial results. 

As high-growth channels like Connected TV (CTV) continue to rise, these multi-ID solutions offer a powerful tool for more efficient campaigns that maximise ROI and reduce the risk of wasted spend. By taking a proactive approach today and embracing game-changing innovation, brands can ensure they stay ahead once the market rebounds in 2025/26.

Phil Acton, Country Manager UK, Adform

Video advertising remains a powerhouse

It’s surprising to see video spend pull back somewhat in the last quarter of 2024, especially considering what a standout year it was for TV and video overall. Notably, research indicates that connected TV (CTV) spend is projected to nearly double by 2028, while viewers in the UK now have access to approximately 650 FAST (free ad-supported streaming television) channels. This underscores the continued growth of both mediums and their role in reshaping video marketing by offering scalable and performance-driven opportunities.

I would be very surprised if this Q4 observation is not a one-off anomaly. We expect 2025 expenditures on streaming formats to reach record highs. Video advertising remains a powerhouse, providing unparalleled opportunities for storytelling and audience engagement. In 2025, advancements in AI-powered ad placements, real-time data-driven targeting, and interactive video formats are set to reignite investment. With Smart TVs functioning as digital hubs in households, the home screen offers brands a unique opportunity to connect with audiences in true discovery mode, driving both brand-building and measurable ROI. This reinforces the critical role of video in modern marketing strategies.

Ed Wale, VP, International, LG Ad Solutions

The challenge is ensuring media plans are running as efficiently as possible

The resurgence of UK marketing budgets highlighted in the latest UK IPA Bellwether, along with the recent announcement of slowing inflation, are grounds for optimism. While factoring in future economic headwinds, such as projected US tariffs and the potential impact of changes to the Government’s budget, consistent and substantial investment in marketing will help brands navigate this period and maximise their growth potential. The challenge is ensuring media plans are running as efficiently as possible, with budget directed at activity that will drive the best business outcomes.

Rather than promotions, which increased this quarter and provide short-term bottom line boosts but can damage long-term brand value, success will be through understanding who has the greatest propensity to purchase and what digital and physical marketing experiences will drive them down the funnel. Building this complete 360 view of the customer across channels and platforms is only achievable through data collaboration. An accurate 360 customer view means bringing together data from internal and external sources to unlock marketing insight and precise delivery with transparent, omnichannel measurement. 

Marketers should invest in data collaboration solutions, including data clean rooms, and align their organisations to work with owners of high-quality, first-party data, whether that be another brand, publisher, media network, or broadcaster. The outcomes will be better media targeting, planning, outcomes, and long-term business value.

Hugh Stevens, UK MD, LiveRamp

This isn’t just about spending more – it’s about spending smarter

Looking ahead, the forecasted +15.6% growth for 2025/26 speaks volumes about how marketers are doubling down on data-driven strategies to connect with audiences on a deeper level. This isn’t just about spending more – it’s about spending smarter.

Take hyper-personalised email campaigns, for example. AI-powered tools can create dynamic, real-time messages that hit the mark every time. Combine this with the precision of programmatic advertising, and marketers have a recipe for maximising ROI while driving sustained growth.

In today’s landscape, hyper-personalisation isn’t a nice to have – it’s the key to standing out. As AI continues to unlock new possibilities, the brands that embrace it will lead the way into a new era of marketing innovation.

Ryan Nelsen, CMO, StackAdapt

Brands are increasingly leveraging AI  

The latest IPA Bellwether reveals that brands are increasingly leveraging AI to streamline workflows and accelerate tailored marketing, marking a positive development. Brands that incorporate AI for custom bidding algorithms will achieve greater efficiency, creative freedom and improved campaign optimisation, leading to higher returns on investment. By harnessing signals such as media quality, attention and contextual relevance, this approach maximises engagement and delivers business outcomes. 

Anna Forbes, Regional Vice President, Northern Europe, DoubleVerify 

Tech vendors have an exciting opportunity

Despite cost base pressures and uncertainty around overseas trading, the return to budget growth is encouraging: marketers can refocus on increasing spend, while technology vendors have an exciting opportunity to develop solutions that will help them do so effectively. The fact that wider online advertising has outperformed all other main media categories is also interesting, although not surprising – underlining its ongoing ability to control investment, audience targeting, and placement decisions. 

Through 2025, this trend will remain strong, especially as marketers and broader media buyers make greater use of programmatic tools. Whether they want to build their brand or boost short-term performance, increasingly advanced capabilities will make it easier to gain a clear view of online advertising supply chains that bolsters confidence and ensures their campaigns drive efficient, measurable results. 

Jonathan Haines, Managing Director, UK & Northern Europe, Equativ

Marketers who adopt attention as a key performance metric will retain the competitive edge

Whilst marketers are cautiously optimistic about overall budget growth, declining spend on main media will raise a key question for brands - are budgets being used effectively? The best ad in the world is completely useless if nobody sees it. 

An Ebiquity study in partnership with Lumen Research* found a near perfect correlation between the number of attentive seconds per thousand ad impressions delivered by a media type and the incremental profit generated for brands. In short, brands must start paying attention to attention.

Every marketer knows that attention leads to action, but they assume that their campaigns get more attention than reality. Marketers who adopt attention as a key performance metric, will retain the competitive edge. Real world attention data shows marketers which of their ad placements get attention, and how much. Not only helping marketers fully understand ad performance, but crucially helping demonstrate marketing effectiveness to boards, and the positive impact on sales growth and hard business results.  

Mike Follett, CEO & founder, Lumen Research

A huge potential for transformation  

2024 certainly presented its challenges, particularly in Q3, with a shifting political landscape both in the UK and globally driving a cautious approach for businesses. That said, it’s encouraging to see UK businesses – operating both locally and across multiple markets – begin planning for 2025 and 2026 with provisional budgets showing an upward trend.

As marketers focus on personalisation and maximising the impact of their budgets to drive brand engagement and recognition, this is an exciting time for the industry, especially the space in which we predominantly work. AI and generative AI live at the heart of innovation and brands now have access to the tools to enhance creativity, connect with consumers in environments that truly resonate, and significantly boost ROI. The potential for transformation has never been greater.

Marko Johns, UK Managing Director Head of Agency, International, Seedtag