Marketing Budgets Up but Bellwether Author Urges Caution

In the UK, marketing budgets rose slightly in the third quarter of this year according to the latest Bellwether report, but the study's author has urged caution ahead of public sector cuts and the anticipated increase in VAT.

The quarterly report - commissioned by the Institute of Practitioners in Advertising (IPA) and accountancy firm BDO - shows a 0.5% increase in Q3, up from a 4.6% fall in the second quarter of the year.

Confidence about participants' own company prospects was flat, while confidence in the industries marketers work in fell to 1% from 2% in the previous quarter, and 12.4% in the final quarter of 2009.

Internet advertising spend grew 13.3% and direct marketing budgets climbed 6.8%, as sales promotion and 'other' marketing fell 4.2% and 3.6% respectively.

'With main media advertising revised up to the greatest extent for three years, the survey suggests that many companies have grown bolder about reinvesting in their brands,' states Bellwether report author, Chris Williamson of Markit, 'But this improvement needs to be treated with caution.'

However, Matt Simpson, IPA digital media Group Chairman (pictured), is more optimistic saying: '2010 has been a year of very fast paced change in the online space seeing a proliferation of data, better targeting, the growth of video and exchanges as well as a better understanding of attribution among online opportunities.'

Web site: www.markit.com .