UK companies revised their marketing budgets up to the second highest level in two years in Q2 2026, despite economic and inflationary headwinds remaining at large. This is according to the latest IPA Bellwether Report.

After a strong start to the year, 23.8 per cent of respondents reported an increase to their marketing spend, and the good news is that marketers are investing in events.

As in the opening quarter, events was the leading category for greater marketing investment with a net balance of +11.0 per cent registering growth.

Patrick Reid, CEO of Imagination, commented on the report’s findings: “The latest Bellwether findings reinforce what we’re seeing across the market. Experiential marketing has become a strategic investment rather than a discretionary spend. Even amid ongoing economic uncertainty, brands are prioritising live experiences because they deliver measurable commercial value and create lasting brand impact.

“We’re also seeing growing momentum behind permanent and repeatable experience platforms, from brand destinations to recurring event programmes, which reflect consumers’ willingness to invest in meaningful experiences.

“While AI accelerates the production of digital content, live experiences are becoming even more valuable as a source of authentic, human stories that fuel organic social engagement and influencer activity. The businesses placing experiences at the centre of their marketing strategy are positioning themselves for stronger, more sustainable growth.”

According to the report, several themes will shape the next 12 months in the world of advertising and marketing, including greater use of AI to improve productivity and marketing effectiveness and stronger B2B engagement and customer retention initiatives.

Chris Rhodes, co-founder and creative director at Experience, said: “The most interesting part of this report isn’t that events continue to lead marketing investment. It’s why.

“In uncertain markets, brands naturally gravitate towards channels that create genuine human connection, and live experiences remain one of the few disciplines that can build relationships, generate leads and strengthen brand perception at the same time.

“The report also highlights AI as both an opportunity and a threat. I think that’s exactly right. AI will make our industry faster and more efficient, but it also raises the bar. The easier content becomes to generate, the more valuable memorable, human experiences become.

“Investment alone won’t be enough. The brands that stand out will be those that use technology intelligently, while designing experiences that people genuinely remember. In a market where confidence is fragile, creating something worth leaving the office for has never been more important.”

The report’s central message is one of resilience. UK marketers continue to increase spending despite a more pessimistic business outlook, prioritising channels that support long-term brand growth – particularly video advertising and events. Although economic conditions remain difficult and confidence has weakened, companies appear reluctant to cut marketing investment, suggesting they view advertising as essential to sustaining growth rather than an area for short-term cost savings.

Charlotte Birley, global managing director at Mongoose, said: “The continued growth of events isn’t a surprise. People are becoming increasingly selective about what they give their attention to, and brands are recognising that the best way to earn it is by creating experiences that people genuinely want to be part of.

“The conversation shouldn’t be about events versus digital because the two work best together. The most effective campaigns start with a brilliant live experience and then use social and digital to amplify it, turning one moment into weeks or even months of content, conversation and engagement. That’s where you see the real return on investment.

“What’s particularly telling is that investment in experiences has remained resilient despite economic and geopolitical uncertainty. When budgets are under pressure, every pound has to work harder, and brands are increasingly seeing experiential as a strategic growth driver rather than a discretionary marketing spend. It builds trust, creates advocacy and gives people something tangible to remember, which is becoming more valuable than ever in an increasingly crowded media landscape.”