Check the marketing agencies market outlook before you commit budget

What to take away

Decide whether to buy, hold or split the work. The marketing agencies market outlook in England combines fee benchmarks, demand data and compliance costs.
Use public forecasts from AA/WARC and IPA Bellwether before you sign a retainer.
Apply the two-quarter ruleif both AA/WARC and IPA Bellwether fall for two quarters, hold or split; if both rise, buy.
Check agency pricing models: commission, fee, performance bonus or project rate. Large media accounts often pay a reduced commission plus a fee.
Price compliance work under the Digital Markets, Competition and Consumers Act 2024 and PECR as a line item.
Review when budget data, fee benchmarks or rules change.

UK adspend and Bellwether figures

The marketing agencies market outlook starts with current figures. AA/WARC Expenditure Report (April 2025) put UK adspend at £40.8bn in 2024, up 8.1%. It forecasts £42.7bn for 2025, up 4.6%. IPA Bellwether Report (Q1 2025) recorded a net balance of +8.9% for total marketing budgets. That balance is the share revising up minus the share revising down.

The editions used here are AA/WARC Expenditure Report (April 2025) and IPA Bellwether Report (Q1 2025). Check those sources for later updates.

UK adspend 2023

£36.6bnUK adspend 2023
6.1%year-on-year growth

IPA Bellwether Report tracks quarterly marketing budget revisions. It is a useful leading indicator for retainer demand. GroupM's This Year Next Year gives global and UK ad revenue forecasts. It covers retail media and connected TV. WARC's Global Marketing Index gives monthly sentiment. Enders Analysis covers UK media structure. It suits larger budget holders.

AA/WARC reports UK adspend only. It does not split England, Scotland, Wales or Northern Ireland. For city-level checks, London is the largest UK agency hub, with Manchester and Birmingham the next largest clusters. The IPA Bellwether Report is UK-wide and gives no England-only balance.

Agency pricing and fee benchmarks

Media agency commission for large advertisers often sits between 1% and 3%, according to media auditors such as Ebiquity and FirmDecisions. Project fees use day rates. Senior strategists often bill £700 to £1,200 a day. Mid-weight creatives often bill £350 to £600.

Day rate ranges for senior strategists and mid-weight creatives, plus media commission (Check the marketing agencies market outlook before you commit budget) — Fee benchmarks let budget holders sanity-check agency quotes before signing. Image: Agency Scout

Performance bonuses are common. They usually require a baseline and a share of savings or sales. Ask for a fee reconciliation clause. MediaSense and FirmDecisions provide independent fee benchmarking.

ISBA and IPA publish a Media Services Framework. It sets contract terms and remuneration principles for UK media agency appointments.

Named agencies and market segments

WPP is UK-listed and London-headquartered. It owns GroupM, Mindshare, Wavemaker and EssenceMediacom.

Publicis Groupe has UK offices. It owns Publicis Media, Zenith and Starcom.

Omnicom has UK offices. It owns OMD and PHD.

Dentsu has UK offices. It owns Carat and iProspect.

S4 Capital is UK-listed. It owns Media.Monks.

Accenture Song has UK offices. It suits consultancy-led transformation budgets.

Brainlabs is an independent UK media agency. It focuses on data and experimentation.

Jellyfish is part of Brandtech Group. It handles digital media, data and creative from UK offices.

The7stars is a UK independent media agency. It suits brands wanting a smaller network.

Buy, hold or split: decision rule

Use two public signals: AA/WARC and IPA Bellwether. If both point down for two quarters, hold or split the work. If both point up for two quarters, buy and lock rates. If they disagree, split the account between a larger network and an independent UK agency.

Your own cost per acquisition matters more than any index. A 20% rise for two quarters is a review trigger. If CPA rises 20% for two quarters, hold or split. If CPA falls or holds flat, buy.

Also track retail media, connected TV and search. These channels often outgrow traditional media.

Compliance still shapes cost

Compliance work is billable. New consumer law duties under the Digital Markets, Competition and Consumers Act 2024 change how pricing, reviews and subscription traps are policed. Ask for compliance as a line item.

Consent rules under PECR still govern email, SMS and tracking. The ICO rules on electronic direct marketing, consent and cookies remain the practical test. If an agency cannot show consent records, your list may be unusable.

Our companion guide on marketing agencies trends and outlook for England in 2027 sets out structural shifts. For non-UK comparison, the Federal Trade Commission's competition and consumer protection guidance covers US claim substantiation. It is not a UK rule.

Update triggers to diarise

Review your agency position when any of these occur:

New guidance under the Digital Markets, Competition and Consumers Act 2024.
A change to ICO guidance on consent, cookies or direct marketing.
Your cost per acquisition moves by more than a fifth for two quarters.
AA/WARC or IPA Bellwether data turns down for two quarters.
Your agency changes account leadership or subcontracts core delivery.
You enter a new market, channel or customer segment.

Our guide on marketing agencies risk scenarios in England shows how to turn these into a review cycle.

Glossary

DMCC Act 2024: the Digital Markets, Competition and Consumers Act 2024, which reforms competition and consumer protection rules.
PECR: the Privacy and Electronic Communications Regulations, covering electronic marketing and cookies.
Consent record: evidence of how and when someone agreed to receive marketing.
IPA Bellwether Report: quarterly survey of UK marketing budget revisions.
AA/WARC Expenditure Report: UK adspend measurement and forecast.

Common questions

Is the outlook for marketing agencies in England getting worse?

Not uniformly. AA/WARC has recorded growth in UK adspend. IPA Bellwether shows budget pressure in some quarters. Compliance adds cost. Weak delivery is easier to spot.

Should I shorten agency contracts because of regulatory change?

Shorter terms help if you cannot forecast compliance workload. Agencies often charge higher day rates on short commitments. Break clauses can reduce risk.

Does the DMCC Act 2024 apply to B2B marketing?

Its consumer provisions target business to consumer practices. B2B briefs are largely unaffected. Consumer-facing campaigns face new duties.