UK Marketing Budgets Static in Q2

Results from the Bellwether survey conducted by ad industry body the IPA suggest a cautious mood among the UK's marketers, with budgets unchanged. As usual more respondents reported decreases than increases in their MR budgets.

The Bellwether is based on a questionnaire survey of around 300 UK-based companies that provide regular quarterly information on trends in their marketing activities. This quarter, 20% of panel members said marketing spend had increased, and 20% that it had decreased, with the remainder reporting no change. In the first quarter, positives outnumbered negatives by 8.7% but the report suggests this has fizzled out, with continuing political uncertainty one possible factor.

Breaking down the results, Internet marketing budgets continue to show the most positive balance: just over a quarter of panellists recorded growth here, versus nearly 14% reporting budget cuts, for a net balance of +11.5% - down from +17.2 in the first quarter but still 'robust'. However the report says that main media advertising budgets 'were also given a boost in the second quarter, as some firms used big ticket marketing campaigns to build brand recognition and expand customer bases'. A net balance of +5.6% of companies reported greater main media marketing budgets (from +5.2% in Q1).

Market research spend was reduced for the sixteenth successive quarter, although the dip was less than in Q1 (net balance of -2.9%, from -4.2%), while PR, sales promotion and direct marketing also fared badly.

The survey also showed marketers more negative about their own companies' financial prospects than at any time since the end of 2011 (-9.8% net, versus -2.7% in Q1), and pointed to modest overall growth in ad spend in 2019, with better performance expected in 2020.

Paul Bainsfair, IPA Director General comments: 'Until a clearer political and economic path is outlined, the vast majority of companies are locked in stasis. It is reassuring to see, however, that some companies are revising up their investment in main media advertising; this is where they will build the longer term growth of their brands, which is crucial to weathering these tougher times'.

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.