It's both, no? You can always write macroexpanded code by hand, only with much repetition, so in that sense macros are always compacting.

Except, I suppose, for perverse macros which expand into shorter code :)

It's for both, but utility functions also serve the same purpose (which is why you see people claiming they could do whatever Lisp macros do with function/methods/classes/monads/templates/makefiles, etc.) :-P