The latest Bellwether Report tells a familiar tale, only with a twist. While direct marketing budgets continued to be revised up – marking the 11th consecutive quarter of increases – brand owners are actually raiding spend from other disciplines to ensure they are embracing methods which enable them to be more targeted.
The report draws its own conclusions but Decision Marketing quizzes industry chiefs for their take on what it all means for the sector and beyond.
First up is PrimeAudience vice-president of product Mateusz Rumiński, who reckons that with budgets on a steady upward trajectory, brands need to consider how to maximise their successes in these moments of positivity.
He comments: “Opportunities for growth in AI have emerged as a key tool for refining audience targeting and enhancing campaign results to drive ROI.
“Despite this, there is a tremendous amount of potential still untapped. Our data reveals that only 1% of company executives feel their AI rollout has reached maturity, while only 42% of marketing and sales teams report using this technology at all.
“From ad creative production and audience targeting optimisation to publisher content creation in the era of AI-assisted search, AI is going to be instrumental for marketers in the coming months. If they want to truly understand their audiences, AI is no longer a nice-to-have; it’s an essential tool for success.”
It is a theme that chimes with LiveRamp UK and MEA vice-president of brands and commerce media Alexia Nakad.
She explains: “The growth of marketing budgets, despite persistent economic headwinds, is grounds for optimism. Long-term meaningful investment remains key to expanding market share, and the first decline in sales promotions in two years is evidence that brands are prioritising customer lifetime value over short-term gains.
“Building customer value requires a measurable view of consumer engagement across channels, including video content (which grew by 6.7% in Q3). Consumers might browse TikTok, compare prices on Amazon, buy in-store, and review on Reddit. No single business can track the full journey, making data collaboration essential. Neutral, interoperable clean rooms that connect to high-quality data partners enable marketers to build complete and actionable audience views.
“AI, when underpinned by data collaboration technology, helps marketers turn customer intelligence into action, and it’s encouraging to see respondents continue to invest.
“Moving beyond insight-only use cases into activation and incremental measurement, the technology is helping provide a clearer picture of what is driving growth. Marketers that combine data collaboration built on strong partnerships with AI-driven intelligence will be best positioned to deliver stronger outcomes today and build stronger brand equity for the future.”
Even so, Scale Digital commercial director Dom Coleridge believes the real question for brands is how to make each pound deliver impact.
He continues: “Investment in video and direct marketing is rising, and for good reason. These channels allow teams to see what resonates, optimise campaigns in real time, and link spend directly to outcomes. Approaches that focus solely on reach risk underdelivering, especially as audiences spread attention across more platforms and formats.
“As brands plan for the next quarter, combining channels strategically and testing iteratively becomes essential. Exploring opportunities beyond desktop, including mobile, connected TV, and affiliate marketing, can help teams reach audiences where they are most active and measure impact across every touchpoint.
“As consumer behaviour evolves and AI subtly shapes discovery, predictable reach is fading. Marketing today is less about volume and more about agility, measured performance, and effectiveness. By approaching campaigns with focus and flexibility, brands can convert attention into meaningful business impact.”
Meanwhile, Kantar UK head of brand activation Jodie Gillary says that if marketers really want to make the most of this boost, then there should be one word on their lips: difference.
Gillary adds: “UK brands tend to be pretty good at meeting people’s needs and they’re generally well-known too. The emphasis on lead generation and customer engagement in this dataset suggests that they are continuing to lean into these areas.
“However, they often struggle to differentiate themselves from the competition and our estimates suggest the UK’s biggest brands are leaving a whopping $10bn in potential value on the table compared with their global peers because of gaps in long-term brand building. Difference is the key to this as it not only gives brands an edge but also enables them to charge more.
“Whether it’s through breaking into new categories or tapping into culture, marketers have to make sure their brand stands out from the crowd, shaking things up over and over again in a way that only they can.”
Converge chief revenue officer Mark James offers an alternative view. He explains: “I suspect the bigger story is not the overall spend, but where it’s coming from. Breaking down trends by region, agency scale, and advertiser would reveal massive tides of change beneath the calm surface presented by IPA.
“While the big fish swallow each other, indie agencies are landing big client wins, and the dominance of the London media scene is being challenged by fast-growing regional hubs that have learned to zig while the capital zags.”
But for Exclaimer senior vice-president of global marketing Jenny Herbison, the report shows marketing is getting smaller – in a good way.
She explains: “The Bellwether offers a sign of stability. UK marketers are cautiously increasing budgets, with events and direct marketing leading the way. Beneath the numbers, though, lies a more interesting shift – one that speaks to how marketers are redefining what ‘impact’ really means.
“The rise in direct marketing spend points to a renewed appetite for activity that drives conversation, not just visibility. Budgets are moving closer to the customer, and this shift is changing how organisations think about every interaction. There is growing awareness that marketing doesn’t stop when the ad ends. Every customer touchpoint – from a support response to an employee’s email – contributes to how a brand is experienced. In uncertain market conditions, these moments of everyday communication are becoming vital to brand consistency and trust.
“Marketers are also becoming more pragmatic. The conversation about AI, once dominated by scale and experimentation, is shifting toward application. Teams are using AI to enhance precision – ensuring their messaging remains relevant and consistent across all touchpoints, not to replace human connection but to reinforce it. In a cost-conscious but creatively ambitious UK market, this signals the rise of intentional marketing: thoughtful, data-informed and rooted in real relationships.”
Pictured (l-r): Mateusz Rumiński, Alexia Nakad, Dom Coleridge, Jodie Gillary, Mark James, Jenny Herbison
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