UK Research Budgets 'Fall' as Marketing Spend Rises

UK market research budgets appear to have fallen for the seventh quarter in a row, according to the latest Bellwether Report by the IPA. However, respondents were very positive indeed about other marketing spend.

In the study, which has been conducted by Markit Economics on a quarterly basis since Q1 2000, just under 8% of panellists signalled MR budget growth, compared to more than 17% that indicated a contraction. The resulting net balance of -9.9% was considerably lower than the preceding quarter's -2.5%, and the worst reading in four and a half years of data collection. The report says budgets are also likely to come under pressure during the coming financial year, with a net balance of 2.9% of companies predicting a downward revision to MR spend during 2017/18.

However, upward revisions to marketing budgets were recorded in other disciplines during the first quarter of 2017. By category, Internet and main media both recorded strong growth; direct marketing budgets increased to the greatest extent for two years following stagnation in the previous quarter; and sales promotions and PR were up slightly. Forward-looking data indicates that 41% of the survey panel expect to record an increase in their overall marketing budgets in the coming year, compared to around 15% that forecast a fall.

Paul Bainsfair, Director General of the IPA (Institute of Practitioners in Advertising), says: 'Once again the Bellwether shows that while the impact of Brexit remains uncertain, marketers are continuing to invest in marketing. Furthermore, despite the current, turbulent digital ecosphere, it is clear that marketers are attracted to the cost effectiveness of digital advertising and its ability to reach and accurately target their consumers'.

Not wishing to carp, but DRNO hopes the question asked is not actually 'has your market research advertising budget... been revised up or down?' as in the image - we must be one of very few companies bothered by how much people are spending on advertising their market research, and we suspect most respondents don't do so at all.

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