UK MR Budgets Down but... Turning Corner?

UK market research budgets were revised down in the latest quarter, according to the latest IPA Bellwether Report - extending the negative trend seen since the third quarter of 2015. However, the latest MR budget reduction was the 'softest' in two years.

The report, authored by IHS Markit, is drawn from a survey of around 300 UK-based companies, providing regular quarterly information on trends in their marketing activities. During the most recent quarter, just 6.6% of companies increased their MR spending, compared with 16.2% cutting it - giving a net balance of -9.6%. Plans for MR spending during the 2021/22 financial year also saw a negative net balance, with those expecting cuts outnumbering those expecting a rise by 4.9%.

Total marketing budgets were up for the first time since the fourth quarter of 2019, when a net balance of +6.0% of surveyed companies expanded their total marketing budgets during the second quarter; with just over one-in-five (21.2%) panellists registering growth, compared to 15.2% reporting a decline. In the latest survey, +45.9% of Bellwether panel members said they felt more optimistic about their company's financial prospects, while +11.4% were pessimistic, with the resulting net balance of +34.6% indicating a strong overall level of confidence.

Joe Hayes, Senior Economist at IHS Markit and author of the Bellwether Report, comments: 'The economic data that has emerged in recent weeks tell us that UK businesses have embarked on what we hope will be a short road to recovery. The Q2 2021 Bellwether report was no different, and the strongest upward revision to total marketing spend since the beginning of 2019 is a great indication that firms have grown confident towards economic prospects'.

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

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