Most participants in the survey, which tracks the spending intentions and confidence levels of marketers in the UK, reported that their budgets for market research had been revised down.

The report found that around one-in-five respondents ( 20.2%) reduced their spending for market research, while 11.6% reported budget increases.

The net balance (compiled from the proportion of marketers who increased their budgets during the quarter, minus those decreasing their budgets) was -8.5%, down from -4.0% in the fourth quarter of 2025.

Overall marketing budgets were revised up by +7.3% in the first quarter, according to the Bellwether data – the highest level recorded for almost two years.

The quarterly IPA Bellwether Report is based on a questionnaire survey of respondents from around 300 UK-based companies. Participating companies include a variety of advertisers in terms of sector and geographical location, and respondents are primarily marketing directors or similar.

Bill Doris, vice-president analytics lead, Emea, WPP Media & chair of the IPA media research advisory group, said: “While the broader industry shows growth, market research is navigating a bit of a dry spell, facing the fifth consecutive quarter of budget cuts and the net balance reaching a yearly low of -8.5%.

“Looking ahead to the 2026/27 financial year, the outlook remains bleak, with a net balance of -13.7% of marketing executives expecting further reductions. Despite its importance in understanding consumer behaviour and opinion, market research seems to be taking a backseat as companies tighten their belts.”

Commenting on the growth in total marketing budgets, Maryam Baluch, economist at S&P Global Market Intelligence and author of the Bellwether Report, said: “After stagnating at the end of 2025, total marketing budgets returned to growth in Q1, marking a positive start to the year. This rebound occurred despite a surge in price pressures, driven by rising energy costs, which have cast a shadow of caution and concern over the broader economy.”

Baluch said upward revisions for the new financial year signalled “a cautious mood of optimism and strategic intent within the industry” and “a recognition of the need to invest in growth opportunities and maintain competitive advantage as challenges persist”.