Marketing and advertising spend is increasing according to the IPA’s Bellwether Survey which tracks how brands and agencies are spending their marketing budgets.
And in Q3 the amount spent had increased for 22.3% of businesses with 18.7% reckoning that they had trimmed their spending. Across the year the net balance of 3.6% is well below the 18.4% net balance of those anticipating growth in marketing spend at the start of this year.
That was immediately followed by a negative balance of 4.8% in Q1. However, there have been two quarters of positive net growth since.
Digging deeper, the growth was strongest in events and direct marketing with PR also showing a positive trend. Against this published brands, audio and out of home advertising again slipped. Likewise sales promotion activities were cut back along with market research spending.
By the end of the year the Bellwether survey predicts a growth of 0.6% for the year, below the long term trends of 2%. Next year the organisation is predicting a growth in marketing budgets of 1.2% down from 1.6%, growing to 2.1% for the following year.
The caution is becoming a feature of Q3 says IPA director general Paul Bainsfair due the proximity of the Budget. “That said, it’s encouraging to see the net balance remain in positive territory. Even in a tough economic climate, businesses clearly continue to recognise the value of advertising.
“What’s particularly interesting is that new analysis of IPA data reinforces the strong link between budget and business growth. The message is simple: to drive meaningful results, advertisers need to think big. Big marketing budgets, broad reach and high exposure. Scale really does matter, which is why investing in big brand building media remains so important.”
His colleague, IPA president and CEO BBH London Karen Martin adds: “Creativity must remain at the heart of what we do, with technology serving as the amplifier, not the substitute, for powerful, resonant ideas.”
