Some 66% of IAPI members have reported “stable or growing” revenues this year according to the inaugural IAPI Pathfinder Pulse Survey which will now be published on a quarterly basis.
Launched against a challenging economic backdrop, the survey offers a timely snapshot of business sentiment within the industry and across the broader economy.
The survey, conducted by Amárach Research across IAPI’s members, shows overall optimism about the rest of the year, with more than twice as many expecting increases as decreases despite ongoing economic challenges.
The survey findings were released during the recent IAPI Leaders’ Summit, which was attended by over 50 industry CEOs.
The Pathfinder Spending Index registers at 61, indicating modest expansion. However, this contrasts sharply with sentiment about the broader industry which shows a net sentiment score of –28%. The most significant pressures identified were cost of doing business (–61%), regulatory burden (–50%), and salary expenses (–47%).
While 66% of agencies report stable or growing revenues, 81% expect client marketing spend to decline or remain flat – a clear sign of strategic caution.
In addition, the survey found that clients are pivoting from brand-building toward performance marketing and reusing assets, which often precedes cuts in other consumer-facing investments (retail, hospitality, FMCG).
The survey also notes that there is a sizeable disconnect between optimism at agency level (Spending Index: 61) and broader sector sentiment (–28%) – a micro/macro confidence gap that echoes current economic uncertainty.
“The convergence of advertising, communications, and experiential marketing positions our industry as an early barometer of wider business and economic sentiment,” said Siobhán Masterson, CEO of IAPI.
“Agency workloads and budgets respond quickly to economic shifts. Pathfinder captures how confidence and caution are evolving across the economy. With Irish exports facing heightened global pressure, including €17.1bn in exports now facing potential elevated US tariffs, these findings provide real-time evidence of the impact on the services sector.”
Despite inflationary pressures, rising operational costs, and a complex regulatory environment, the survey notes that the sector is proving resilient with a net positive growth outlook of +23%, with PR agencies showing the highest net optimism (+25%), whereas creative agencies show the highest level of caution, with 54% expecting no change.
Not surprisingly the Pathfinder data also highlights emerging trends including a “marked shift toward digital transformation and AI,” with agencies investing in intelligent, data-driven strategies to enhance effectiveness and client outcomes.
In addition the Pathfinder survey noted “rising international engagement, as Irish marketing and communications agencies increasingly lead cross-border campaigns and partner with global clients.”
Another notable trend it identified was the “growth in strategic advisory services, particularly in experience design, brand consulting, and full-funnel marketing planning.”
For an industry that is labour-intensive, talent acquisition and retention was also singled out as an important factor “to support long-term growth and capability building.”
“As the largest business representative body for Ireland’s marketing and communications industry, we see our members driving enterprise growth, global expansion, and public value,” said Abi Moran, President of IAPI and CEO of Folk VML.
“Creativity is no longer a soft power—it’s a strategic one. At a time of declining investment in talent and tightening margins, we must reassert the value of creativity as a commercial enabler. It drives performance, delivers growth, and builds reputational capital,” she adds.
