Big Upswing for UK Marketing Budgets, Says IPA

IPA's Bellwether Report for the first quarter of 2014 shows a record number of UK firms reporting rising marketing budgets, completing a year of sustained improvement for the sector.

The report is published by Markit Economics on behalf of the IPA (Institute of Practitioners in Advertising), and takes data from a panel of around 300 UK marketing professionals,

The survey has run quarterly since Q1 2000, and the net balance of +20.4% of firms reporting increased spend is the highest figure in that time (the net balance is those reporting an increase minus those reporting a decrease). This is also sixth successive quarter that marketing budgets have been revised up, while 2013/4 saw the biggest increase in budgets for seven years. Across the year as a whole, a net balance of +17.2% of companies said budgets were up - beating +13.5% a year ago, itself the first positive net balance since 2006/7.

Optimism regarding firms' own financial prospects was also high at +41.7 percent, and for wider industry financial prospects the figure of +39% as another record. Companies also see the coming year with more optimism than at any time in the past seven years. The Report's own predictive model forecasts UK GDP up 3%, resulting in an increase in adspend of 4.7% in 2014 and 3.5% in 2015.

Main media advertising (+11.7%) was the biggest beneficiary of the uplift, and supplanted Internet advertising (+8.5%) as the best performer of all categories for the first time in just under three years. The figure for Market Research was just +1.1%.

Report author Chris Williamson, Chief Economist at Markit, says the results are 'the most upbeat assessment of business and marketing spend that we have seen since starting the survey back in 2000.' Paul Bainsfair, Director General of IPA comments: 'With confidence remaining strong, forecasts revised up higher than ever before, and budgets being increased to the highest degree for seven years, the Q1 2014 Bellwether Report reveals that both the advertising industry and the wider economy are facing a future full of opportunity, innovation and most importantly of growth. This is a very good place to be.'

Web site: 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.