Insight · Marketing Spend

Marketing spend optimisation for lean growth

Marketing is one of the largest indirect categories in most UK mid-market P&Ls, and one of the least well procured. UK advertising spend reached £42.6bn in 2024 and is forecast to hit £45.2bn in 2025 and £47.8bn in 2026 [9] — at that scale and growth rate, a 5-10% efficiency gain on marketing spend is usually one of the largest single indirect-category prizes available in a mid-market P&L[9, 10]. The evidence that it can be tightened without damaging growth is public — the trade bodies, media auditors and analyst firms have been documenting it for a decade.

By Matt Buckley

The four levers, with sources

1. Agency compensation

The definitive UK/US industry reference on agency fee models is the ANA's Trends in Agency Compensation Report (19 editions and counting), and the joint 4A's–ANA Decoding Compensation Models paper (April 2024) sets out the output, input and outcome-based models in use. The practical procurement play is to move from open-ended input models (hourly rates, cost-plus) toward output or outcome pricing where scope is stable.

2. Media transparency

The ANA's Media Transparency Initiative — including the 2016 K2 Intelligence investigation and follow-on 2020 Ebiquity/Firm Decisions work — documented non-transparent practices (rebates, principal-based buying, undisclosed arbitrage) inside the media supply chain. The World Federation of Advertisers' Global Media Charter gives advertisers a template of contractual protections: audit rights, disclosure of financial interests, and defined data ownership. If your media contract does not reflect the Charter, it is a candidate for a repaper.

3. Martech stack rationalisation

Gartner's Marketing Technology surveys have tracked stack utilisation year on year. Its 2023 release reported marketing leaders utilising only about one-third of their martech capabilities — down from ~42% in 2022 and ~58% in 2020. Coverage from chiefmartec and MarTech walks through the drivers: lack of training, overlapping tools and no single owner. For procurement the play is a rationalisation exercise (identify overlap, right-size seat counts, exit unused platforms at renewal) rather than a further AI-led purchase.

4. Production and content

There is no single authoritative benchmark for production savings; the levers are less contested: preferred supplier lists, modular templates, reuse discipline, and shifting from bespoke shoots to modular asset systems. UK digital ad spend alone reached £40.5bn, with video investment up 20% year-on-year to £9.3bn and search accounting for roughly 44% of digital spend [10] — a mix shift that makes production and content efficiency, not just media buying, an increasingly material line. ANA's 2022 Procurement 2022 report gives useful context on what mature marketing procurement functions cover, and where production sits in the responsibility set.

Governance without slowing the team down

The risk with marketing procurement is over-controlling and slowing campaign cycles. Well-designed governance gives marketing preferred-supplier lists, agreed rate cards and fast-track approval within envelope — procurement is only involved above a defined threshold or scope. The ANA/4A's Compensation Models paper (linked above) is a fair starting reference for the shape of that policy.

Working with the CMO

Marketing spend optimisation is a partnership, not an audit. The best programmes start with the CMO's priorities (pipeline, brand, ROI) and design commercial hygiene around them. Cost reduction that damages growth is not a win. See our broader cost reduction consulting approach.

References

Every figure cited above is drawn from the independent sources below. Numbers in square brackets in the text link to the matching source.

  1. Trends in Agency Compensation Report (19th edition)Association of National Advertisers (ANA)
  2. Decoding Compensation Models and Implementing the Right Model (April 2024)4A's & ANA
  3. Media Transparency Initiative (K2 Intelligence report and follow-on work)ANA
  4. Global Media CharterWorld Federation of Advertisers
  5. Gartner Marketing Technology Survey — martech utilisation (2023)Gartner
  6. Martech utilization problems — how to diagnose and remedy themchiefmartec
  7. Marketers are only using one-third of their stack's capabilityMarTech
  8. Procurement 2022 reportANA
  9. UK advertising records £42.6bn spend in 2024Advertising Association / WARC
  10. Digital Adspend 2025IAB UK
Is marketing procurement the same as marketing?

No. Marketing procurement supports the CMO on commercial terms with agencies, media, martech and production — it does not decide brand strategy or media mix. Done well it protects growth budget by removing waste, not by starving campaigns.

What is the biggest source of waste in most stacks?

Two: media supply-chain opacity (documented by the ANA's K2 Report) and martech under-utilisation (Gartner's most recent Marketing Technology survey found stack capability utilisation at around one-third).

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