UK advertisers cut spending for the first time in four years on tariff turmoil

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British advertisers have first reduced their budgets in four years, as the prospect of a trade war in the world economy has caused confidence in large consumer brands, according to the industry.

Advertisement Budgets in the first quarter of the year, the Institute of Advertising Figures on Thursday, as well as Britain Companies have remained behind the fear and concerns of the tariff. Relief of consumer confidenceA number

Near the companies included in the quarterly data of IPA, there was a reduction in marketing budgets, while only the fifth said that there would be an increase. This pushed the balance in favor of the business, reducing advertising costs for the first time since the first quarter of 2021.

IPA’s finds are the last proof of feedback British companies As they engage in a sharp increase in working expenses, which opened in last year’s budget and uncertainty caused by the escalation of the US trade war.

Marketing budgets are closely linked to business mood, and advertisement is seen as an indicator of economic prospects for the number of businesses that set budgets.

“Paul Bainspir”, the EC General Director, says:

He also pointed out other issues related to business trust in the quarter, such as the national insurance fees of employers, increased minimum wage, which led to “short-term sales” and cuts the main media budgets.

IPA said that the difference between business cutting and collecting budgets is 4.8 percent, in favor of those who decrease the costs, when their budgets grow more companies.

“The quarter of the opening of 2025 has declined a significant decline in the company and the industry,” said the report, adding that about a third of respondents in the first quarter felt less optimistic in the last three months. The company’s confidence has fallen since its lowest level of 2022.

The April 6-month director Samantha Smith, the Global Marketing Agency, the IPA city passenger, for Bristol, South Welsh, says that someone can change the budget cut.

IPA found that many marketing leaders still expect advertising budgets to grow during the year, despite the first quarter. More than a third of respondents expected to grow their total market budget budgets, and doubles the proportion.

In the first quarter, direct marketing operations attracted the highest cost growth, followed by events and progress. Media marketing budgets: house, audio and video, everyone shrinks.

S & P Global Market Intelligence, which has produced the IPA report, reduce its prediction to the UK’s economic growth by 0.6%, in response to new British import charges.

However, it has not changed for its advertisements, which make predictions in 2025 and 2026, respectively, 1.3% and 1.8 percent.