Marketing Spend Climbs but MR Budgets Fall, Says IPA

While UK marketing spend has risen at the strongest rate recorded in nearly thirteen years, market research budgets were down in Q3, according to the latest IPA Bellwether survey.

The Bellwether Report, which is researched and published by Markit Economics on behalf of the IPA (Institute of Practitioners in Advertising), features original data drawn from a panel of around 300 UK marketing professionals.

The study, which has been conducted on a quarterly basis since Q1 2000, showed a net balance of 12.3% of companies registering an increase in budget during the third quarter of 2013, compared to a 7.3% increase in Q2. Respondents to the survey cited improved economic conditions and business revenues that in turn offered a platform for increased marketing investment.

Q3's survey indicated that company confidence regarding financial prospects grew more than any time in the last eight-and-a-half years, with the net balance of firms becoming more optimistic reaching 49.2%, up from 27.6% in the previous quarter.

However there are strong differences by sector: budgets for market research fell 3%, while direct marketing was down 3.4%, events declined 1.1%, and PR dropped 1.7%. By contrast, Internet advertising budgets shot up by 11.7%, and traditional media advertising saw a second successive period of growth, with budgets revised up by 7.7%.

Chris Williamson (pictured), Chief Economist at Markit, comments: 'These survey findings are not only great news for the marketing industry but also for the UK's broader economic recovery. The fact that business are starting to spend in earnest again suggests we may finally see a long awaited upturn in investment spending, which will help take the UK's recovery onto a more sustainable footing.'

Web sites: www.markit.com and www.ipa.co.uk .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.