The businesses winning in 2027 won’t necessarily spend more on marketing. They’ll invest more deliberately in trust, visibility and relationships.
This week, the latest IPA Bellwether Report revealed that UK marketing budgets have reached their second-highest level in two years, despite ongoing economic uncertainty, rising costs and continued inflationary pressures. More businesses increased their marketing budgets than reduced them, suggesting that many leaders still see marketing as a worthwhile investment, even when every pound is under scrutiny.
However, the more interesting story isn’t that businesses are investing. It’s where they’re investing. The latest data shows increasing focus on activities that help build trust, visibility and customer relationships, including events, direct marketing, PR and video. Understanding where marketing budgets are going can help SMEs make better decisions about their own priorities, both now and in the years ahead.
At first glance, the headlines might make it sound as though businesses are simply spending more money on marketing. I don’t believe that’s the real story.
The more interesting question is why businesses are choosing to invest, where they are putting that investment, and what those choices tell us about the way customers are buying today. When you look beyond the headline figures, a very different picture starts to emerge. Businesses aren’t blindly increasing budgets. They’re becoming more selective. They’re backing activities that help them build trust, strengthen relationships and stay visible in increasingly crowded markets.
For me, that’s where the real lesson lies for small and medium-sized businesses.
Where UK marketing budgets are being invested
According to the latest UK data, events remain the strongest area of marketing investment, followed by direct marketing, PR and video advertising. Within media spending, video was the standout performer, reaching its highest level in almost two years.
What’s striking is that these are not activities focused purely on short-term lead generation.
Events create opportunities for conversations and relationships. Direct marketing helps businesses stay connected with existing and prospective customers. PR builds credibility and authority. Video helps people understand who you are before they ever pick up the phone or send an enquiry.
In contrast, some other forms of online advertising saw reduced investment. That doesn’t mean online advertising is dead. Far from it. It simply suggests that businesses are becoming more thoughtful about where they spend their money and how quickly they expect results.
The businesses increasing investment appear to be recognising something many of us have been seeing for a while: customers need more confidence before they buy.
Buyers have changed
Most small businesses don’t have a marketing problem. They have a trust problem.
Customers are researching for longer. They’re comparing more options, seeking recommendations, checking websites, LinkedIn profiles, testimonials and reviews before making contact.
This is particularly true in B2B markets, where buying decisions often involve larger investments, multiple stakeholders and greater risk.
For years, marketing conversations focused heavily on clicks, impressions, followers and leads. Those things still matter, but they’re no longer enough on their own.
Many customers have become harder to reach and slower to commit. As a result, businesses are investing more heavily in activities that help them become known, remembered and trusted before a sales conversation even begins.
That’s exactly what the Bellwether data appears to be signalling.
What UK marketing budgets mean for SMEs
Whenever marketing budget reports are published, there is a temptation to focus on the numbers. Business owners start asking how much they should spend and whether they’re investing enough.
In my experience, that’s often the wrong question.
The businesses I see making the most progress are rarely the ones with the biggest budgets. They’re the ones with the greatest clarity.
They know who they want to work with. They understand the problems they solve. They communicate consistently. They stay visible. They focus on a small number of activities and repeat them well.
That’s why I continue to believe that strategy comes before tactics.
Without clarity, even a significant marketing budget can disappear quickly. With clarity, a modest budget can create momentum, conversations and opportunities.
That’s been a core principle of Boo! Marketing for a long time. Growth rarely comes from doing more. It usually comes from doing the right things more consistently.
What UK marketing budgets tell us about 2027
The Bellwether findings tell us what businesses are investing in today, but they also point to some important trends that could shape 2027.
The first is the continuing importance of relationships. Networking, partnerships, events, communities and referrals are becoming increasingly valuable because they help businesses build trust faster. In a world where people are overwhelmed with information, genuine human connection becomes a differentiator.
The second is the growth of video. As more content becomes automated and AI-generated, people are looking for authentic communication from real people. Video gives businesses an opportunity to show expertise, personality and credibility in a way that written content alone often cannot. The latest data suggests businesses already recognise this.
The third is the enduring value of owned audiences. Direct marketing continues to perform strongly because businesses increasingly understand the importance of building relationships they control. An email database, customer community or loyal audience provides stability that social media algorithms cannot guarantee.
Finally, I believe strategy will become an even bigger competitive advantage.
The challenge facing most businesses today isn’t a lack of marketing options. It’s an abundance of them.
There are more channels, more tools, more platforms and more advice than ever before. Yet many business owners still feel overwhelmed and uncertain about where to focus their time and resources.
The businesses that succeed in 2027 won’t be the ones trying to do everything. They’ll be the ones that understand what matters most to their customers and build a simple, repeatable approach around it.
What We Can Learn From 2026 So Far
The most important message from the latest marketing budget data isn’t that businesses are spending more.
It’s that they’re investing differently.
The strongest growth isn’t in chasing attention for the sake of it. It’s in building trust, visibility and relationships that support long-term growth. Businesses are continuing to invest in events, direct marketing, PR and video because they help create confidence before a sales conversation even begins.
For small businesses, that’s good news.
You don’t need the biggest budget in your sector to compete. You don’t need to be on every platform. You don’t need to jump on every trend that appears in your LinkedIn feed.
What you do need is clarity about who you want to work with, confidence in what makes your business different, and a realistic action plan that keeps you visible consistently.
That’s what marketing should do.
Not create more noise. Not add more pressure. Not leave you feeling overwhelmed by another list of tactics.
Just help the right people find you, understand what you do and trust you enough to take the next step.
If the trends we’re seeing in 2026 continue into 2027, I believe the businesses that will attract the most opportunities won’t necessarily be the ones spending the most on marketing.
They’ll be the ones that are easiest to trust.
And trust is built through clarity, consistency and showing up long before someone is ready to buy.
Sources: cmbeyer.co.uk, dailyjunction.org, moduli.co.uk, creativema…gltd.co.uk
Want clarity? Book a clarity call here
