The figures come after a slight drop in net market research spending in the third quarter of last year, and the latest findings showed 14.1% of companies were increasing market research budgets compared with 10.9% who were making cuts.

Preliminary data for the 2025/26 financial year also suggested that market research budgets will increase over the coming year, with a positive net balance of 3.2%.

Bill Doris, vice-president analytics, Europe, Middle East and Africa, at EssenceMediacom and IPA Media Research Advisory Group chair, said: “The latest IPA Bellwether Report shows a resurgence in the research sector. Budgets bounced back in Q4 2024, and we’re seeing a continued upswing heading into 2025.

“Businesses are doubling down on research into their brands, consumers and markets, and the future looks bright for market research as we head into 2025.”

The Bellwether also showed that 21.7% of panellists reported an increase in their total marketing budgets during the fourth quarter, which was higher than the almost 19.9% who made cuts, resulting in a positive net balance of 1.9%, up from 0% in the previous quarter.

The latest figures meant that upward revisions to advertising spend have been registered in 14 out of the last 15 quarters.

However, the most recent net balance was still the second-lowest figure recorded since the beginning of 2021, which the IPA said pointed to a still-cautious approach among businesses towards spending.

Events emerged as the top-performer in the final quarter, achieving a net balance of 12.3%, up from 9.9% in Q3.

PR came in at second with a net balance of 6.8% of firms growing their budgets, albeit down from 11% in Q3.

The remaining segments to see growth were direct marketing (net balance of 5.6%, down from 9.7%) and sales promotions ( 4.1%, up from 3.2%).

Main media advertising saw a fresh reduction in Q4, ending with a net balance of -4.3%, down from a positive score of 4.3%, as did the category tracking any other form of paid-for marketing activity not already accounted for, registering -4.2, up from -9.7%.

S&P Global Market Intelligence narrowly reduced its annual UK GDP growth forecast for 2025 to 1%, from 1.3%, with expectations that US imports of goods will be subject to tariffs was a key reason for this reduction, with the US being the UK’s largest single export market.

The prediction for UK advertising spend growth was nevertheless unchanged for 2025 at 1.3%.

Paul Bainsfair, IPA director general, said: “Given the significant economic and geopolitical challenges that UK companies are facing, this latest IPA Bellwether Report paints an understandably cautious picture. However, it is encouraging to see that, despite these headwinds, UK companies are increasing their overall marketing budgets.

“Looking ahead, it’s promising that both UK companies’ provisional budget plans for 2025/26 and S&P Global’s ad spend forecasts are trending upward. Advertising remains a vital tool for brand growth, economic development, fostering competition and driving innovation. As such, companies shouldn’t overlook the importance of sustained investment.”

Lucy Bristowe, chief executive officer, UK and western Europe, at Kantar Media, added: “With bigger budgets for events and direct marketing, brands are showing that they are serious about meeting customers where they are, face-to-face and on their own terms, while also using AI and technology to drive personalisation across digital channels.

“As hyper-personalisation becomes the new normal, we expect to see brands leading the pack in 2025 when they have the tactics, tech, and talent to truly connect with their audiences.”