The new report highlights the key marketing challenges faced by UK businesses.
With insights from over 500 companies across various sectors, the data reveals trends in budgeting, marketing, technology adoption, and industry challenges.
Read the State of Digital Marketing Report via the link.
71% of businesses trust AI
AI is rapidly shaping the future of business, with 71% of companies reporting increased trust in AI compared to last year — a clear sign of industry-wide acceptance. As AI tools become more sophisticated and reliable, businesses are embracing the benefits of AI technology.
Emerging trends such as generative AI, Google AI-powered analytics tools, and advanced chatbots are delivering measurable results through advancements in natural language processing (NLP).
Across industries, these AI-driven innovations are helping businesses optimise processes, personalise experiences, and enhance efficiency, underscoring AI’s transformative impact in today’s market.
Businesses are also using the AI revolution as an opportunity to use new technologies, with 27% of businesses reporting that they are using AI to bridge skills gaps. Top AI tools used by businesses in 2024 were Google Bard (58%), ChatGPT (53%), Bing AI/Copilot (30%), CapCut (30%), DALL-E (18%), and Midjourney (11%).
Furthermore, 53% of businesses plan to increase their marketing budgets for 2025, with 25% planning to invest in additional tools and outsourcing.
Brandon Griffin, Interim Marketing Director at LOCALiQ UK, said: “AI is becoming indispensable for businesses today, with 71% of companies now trusting AI more than ever. Its rapid development, alongside tools such as Generative AI and Google’s analytics solutions, helps businesses stay ahead of the curve. Companies can no longer afford to ignore the impact of AI—it’s essential for companies aiming to thrive rather than get left behind in today’s competitive market.”
43% of businesses plan to expand marketing teams to enhance growth
The drive to expand marketing teams reflects a growing recognition among businesses of the critical role marketing plays in building brand awareness.
The report indicates that 43% of businesses plan to bolster their marketing efforts in response to increased competition. Companies are investing in larger teams and enhancing their skill sets to ensure they can effectively capture consumer attention in a crowded marketplace.
The growing emphasis on digital marketing strategies compels companies to adopt innovative approaches, which may involve higher spending on new tools and resources as 53% of businesses intend to increase budgets in 2025.
25% of businesses are looking at investing in more marketing tools and outsourcing their marketing in 2025. This trend signals expanding budgets as businesses strive to adapt to the evolving digital landscape and maintain their competitive edge.
37% of businesses reported to the State of Digital Marketing Report that AI will allow them to expand their marketing teams as these tools accelerate business growth, indicating an industry trend that AI is becoming more integral to business and marketing. Previous fears about the potential effects of AI on the job market have been quelled by a need for specialist skills with 37% are planning to expand their team sizes in the coming year.
Brandon Griffin, Interim Marketing Director at LOCALiQ UK said, “Digital marketers are skilled professionals whose roles require extensive training and an unwavering commitment to continuous learning. Digital marketing talent is a critical driver for business growth, and these positions remain relatively secure, even during economic challenges such as the cost-of-living crisis.”
35% of business rank SEO training as a top priority
LOCALiQ UK recently recognised as the 2024 SEO Agency of the Year, encourages businesses to stay informed about the most recent algorithm updates. Search engines continually refine their algorithms, making it critical for businesses to adapt their strategies to maintain visibility and competitive positioning.
To avoid falling behind, businesses must stay on top of these changes and invest in regular SEO training. As algorithms evolve, so do the tactics required to keep websites optimised and relevant. This ongoing need for SEO knowledge highlights the importance of comprehensive training to ensure businesses aren’t left behind in the ever-changing digital landscape.
Nick Ashwood, Managing Director at LOCALiQ UK, said, “SEO is continually evolving, and staying ahead of changes is essential to maintain visibility and engagement in a crowded market. Invest in continuous training and resources for your marketing team and you will enhance skills and ensure your strategies remain effective and competitive.”
“We had a great turnout for the latest edition of the report. It’s invaluable to understand how marketers are feeling about the current landscape. Thank you to everyone for participating— I look forward to seeing how the year unfolds.”
