Budgets are strong
- Marketing budgets increased to +7.3% net balance – the highest rise in two years
- Up from 0.0% in Q4 2025
- 26.8% increasing vs 19.5% decreasing
Despite a weak economy (0.5% GDP), marketing is clearly being treated as a growth lever, not a cost.
Spend is skewed toward short-term activity
- Events: +14.7% (standout growth)
- PR: +6.0%
- Direct & promotions back in growth
There is a clear focus on conversion, engagement and immediate return.
Brand investment is starting to recover
- Main media: +4.5% (strongest since Q3 2023)
- Growth driven by video and online
- Traditional channels (OOH, print, audio) still declining
So, early signs of rebalancing – but still digitally weighted.
Overall confidence is uneven
- Company outlook: slightly positive (+0.6%)
- Industry outlook: still very negative (-21%)
Businesses feel better about themselves than the wider market. This is also reflected in recent Institute of Directors surveys.
Outlook: cautious growth
- 2026/27 budgets: +3.0% expected
- Adspend forecast upgraded to 2.5% in 2026 → ~3% by 2028
So, growth is predicted to continue – but cautiously.
We’ve seen this many times over the last 38 years, and in reality, it’s quite familiar downturn behaviour.
Generally, when faced with uncertain conditions, companies shift budgets toward:
- short-term activation
- measurable channels
- pipeline delivery
And from this latest report, this is clearly happening.
“The good news is this isn’t full short-term thinking. Main media is back in growth, with video investment increasing. It’s encouraging that the market isn’t abandoning brand, but it remains underweight and not where it needs to be. In terms of effectiveness, we keep banging the drum – and we all need to stay strong and rely on the evidence that proves brand building pays dividends in the long term,” Rob adds.
Implications for education
Whilst this isn’t an education report, there is a clear pattern.
We of course, need to maintain focus on open days, events and conversion activity to secure the next intake. But with ongoing international volatility and domestic demand weakness, there is real pressure.
Budgets must be balanced. While conversion is critical, we also need to keep an eye on future pipelines.
So, what will differentiate institutions?
Those that:
- maintain brand investment alongside recruitment activity
- build consideration earlier in the cycle
- reduce reliance on last-minute conversion tactics
In a more competitive, slower-growth market, brand becomes an absolute necessity – not an option to avoid investing in.
In summary, the winners will be those who balance immediate recruitment with long-term demand building, rather than optimising purely for the next intake.
Get in touch to see how we can help: kim.mclellan@hunterlodge.co.uk