UK Marketers Optimistic

Marketing budgets in many British firms were revised upwards in the second quarter of 2013, giving the most optimistic picture in six years according to one measure in the latest IPA Bellwether survey, published today. Market research budgets however appear little changed.

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.

More than a fifth (22%) of companies reported an upward revision of their marketing budgets during the latest survey period, compared to 15% that saw their budgets 'trimmed'. The resulting net balance of +7.3% was the highest since Q3 2007.

A net balance of +13.5% of companies have pencilled in a net increase in marketing budgets during 2013 as a whole, which is the most positive forecast for two years.

This increase in total marketing budgets in Q2 was accompanied by growing confidence among companies regarding their financial prospects. Companies are at their most upbeat since Q3 2009 (a net balance of +27.6% being a sharp improvement on Q1's +16.8%).

While market research budgets were unchanged, the Internet category (which includes online advertising and search/SEO); PR; sales promotion; main media advertising; and direct marketing all saw increases in their budgets, although decreases were seen in the 'other' category and in the events sector.

Chris Williamson (pictured), Chief Economist at Markit and author of the Bellwether report, comments: 'Marketing spend looks set to rise in 2013 for the first time in six years as companies finally perceive a brightening business outlook at home and abroad. With marketing spend a key barometer of the health of the economy, not only is GDP growth likely to have accelerated in the second quarter, but the Office for Budget Responsibility's official forecast of 0.6% economic growth this year is all of a sudden starting to look overly pessimistic.'

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.