The latest IPA Bellwether report highlights a positive shift in marketing budgets during Q4 2024, driven by an increased focus on events and sales promotions. Following a flat Q3, marked by uncertainty ahead of the UK government’s autumn budget, marketers allocated more resources to activities that engage audiences directly, reflecting a commitment to real-life consumer connections and value-driven incentives.
Events See Unprecedented Growth
Events led the way with a remarkable 12.3% increase in spending, up from 9.9% in Q3. This underscores the growing importance of live experiences as a marketing strategy. Brands are increasingly leveraging events to create immersive and memorable engagements that resonate with consumers in ways that digital platforms often cannot replicate. The IPM notes that this trend highlights the continued value of real-world interactions in building brand loyalty and enhancing consumer trust. This is a trend that has been discussed at length by the IPM experiential marketing community group, emphasising the importance of face-to-face engagement in creating authentic and lasting connections between brands and their audiences
…
Sales Promotions Remain Essential
Sales promotions also saw a notable rise, with a 4.1% increase in spend. During challenging economic periods, promotions serve as a critical tool for brands to attract and retain customers. The IPM emphasises that promotional campaigns provide immediate value to consumers while supporting businesses’ bottom lines, making them a key component of resilient marketing strategies.
While events and sales promotions thrived, main media advertising—including channels such as video, audio, and published brands—declined by 4.3%. The shift towards cost-effective and immediate-return marketing channels reflects broader economic concerns among businesses navigating rising costs and profitability pressures. As Paul Bainsfair, IPA Director-General, noted, such cuts are not unusual during periods of financial strain but could impact the long-term growth of brands.
A Bright Outlook for 2025
Looking ahead, the report reveals optimism among marketers, with 25.6% of companies anticipating budget increases in the 2025-26 financial year. This confidence signals a continued focus on strategies that deliver tangible results, such as experiential marketing and sales promotions.
The IPM advocates for brands to capitalise on these growth areas, using events and promotions to forge deeper consumer connections and drive engagement in an increasingly competitive market. By investing in these strategies, businesses can not only weather economic challenges but also position themselves for sustained success.
Read the report summary here
