UK marketing budgets have recorded their strongest upward revision in more than two years, with events among the biggest beneficiaries, according to the Q3 2026 IPA Bellwether Report.
The latest survey found that 25.6 per cent of marketers had increased their budgets, compared with 11.3 per cent who had reduced them, producing a net balance of +14.3 per cent. The result is the strongest upward revision to total marketing budgets since Q2 2024, with all categories recording positive balances.
Events recorded a net balance of +15.1 per cent, narrowly behind public relations at +15.3 per cent. Main media budgets also rose, reaching a net balance of +9.8 per cent, its strongest performance in nine quarters.
However, industry leaders have cautioned that improved budget intentions do not necessarily mean an immediate increase in business for event agencies and suppliers.
Max Fellows, CEO and founder of allpoints, said the report offered encouraging signs, but described a more nuanced picture in the events market itself.
“The latest IPA Bellwether Report suggests a welcome uplift in marketing investment across the board, with event budgets in particular reaching a nine quarter high of +15.1 per cent. However, reported budget intentions don't always translate immediately into growth on the ground, and the picture we're seeing across the events market itself is more nuanced.”
Fellows said clients remained cautious, with briefs harder to secure, budgets under pressure and businesses increasingly consolidating their agency relationships in search of broader capabilities and greater value.
He added that the distinction between budget sentiment and actual spending was important, with growth increasingly dependent on winning a greater share of client investment, expanding into adjacent specialisms and demonstrating commercial value.
“The current improvement in budget intentions could be an early indicator of stronger growth ahead, but the real test will be whether it translates into more briefs, bigger projects and sustained demand through 2027 and 2028,” he said.
Proving the value of events
The challenge of demonstrating return on investment was a recurring theme, with contributors arguing that agencies must make a stronger case for the business outcomes live experiences can deliver.
Andrew Orr, managing director of TRO, part of Omnicom, said the increase was an encouraging signal for experiential, despite fragile business confidence.
“The ongoing challenge for the events and experiential sector is demonstrating the value of that investment, particularly when every pound is under greater scrutiny,” he said.
“That means looking beyond immediate engagement to show how live experiences can build lasting relationships, change behaviour and deliver meaningful outcomes.”
Ian Cummings, global CEO of Nteractive, said the industry needed to change the conversation with clients.
"Too often, the discussion starts with the cost or budget of an event and works backwards to justify the investment," he said. "Instead, agencies need to help clients define the value they want to create - from changing behaviour and building relationships to generating deep knowledge and commercial opportunities - and work backwards from there.
If experiential agencies want events to be recognised as strategic business investments, we must be better at helping clients move beyond, starting with event costs but moving to value creation and understanding what makes the commercial takeaway tangible."
Human connection and strategic investment
Other industry leaders pointed to the importance of strategy and human connection in explaining why brands continue to invest in events.
Lea Karam, CEO and founder of Mindscope, said increased spending was only part of the picture, arguing that brands needed a clear strategy to ensure their investment made a difference.
"As marketing budgets come under renewed pressure to deliver, I expect to see more brands exploring collaborations beyond their traditional categories," she said. "But the strongest partnerships won't be driven by novelty alone. They'll come from a clear strategic fit between the brand, the audience and the experience."
Nina Ferguson, co-founder and CEO of INCA Productions, said the findings reflected what her business was seeing in the market, with brands using in-person experiences to build trust and stronger relationships with communities.
“During these uncertain times, people need genuine human connection more than ever,” she said. “Brands are working harder to build trust, physically showing up in communities and spreading joy.”
Claudia Stephenson, managing director of INVNT in EMEA, described the increase in event budgets as validation for the industry.
She said: "Amid the AI boom, IRL experiences have become the ultimate way for a company to prove its vision. Despite cautious market outlooks, companies are prioritising in-person events because they are undeniable drivers for end-of-year momentum and business renewals."
Confidence remains fragile
Despite the upward revisions to marketing budgets, confidence in the wider economy remains subdued.
The report found that a net balance of -20.3 per cent of marketing budget holders expected industry-wide financial prospects to improve. While still negative, that represented a less pessimistic outlook than the previous quarter and the same period last year.
Views on the financial prospects of respondents' own organisations were also negative, at -2.7 per cent, although this improved from -9.6 per cent in Q2.
Paul Bainsfair, director general of the IPA, said the increase in marketing investment was encouraging, with businesses raising spending at the strongest rate in more than two years.
He also highlighted the importance of balancing short-term sales activity with investment that builds longer-term demand.
“In uncertain times, the most successful businesses are those that balance demand capture with demand creation, recognising that an excessive focus on today's sales can come at the expense of tomorrow's growth,” he said.
