No change to market research budgets but marketing spend rises
UK — Market research spend remained static in the second quarter of the year, despite a reported rise in marketing budgets, according to the Institute of Practitioners in Advertising’s (IPA) latest Bellwether survey.
The survey found that businesses are noticing an improved economic climate with 22% reporting an upward revision to their marketing budgets during the latest survey period, compared to 15% that indicated they were cutting back – the resulting net balance of 7.3% being the highest since Q3 2007.
As a result, the report’s authors expressed hope that the sustained period of marketing cuts has come to an end, with a net balance of 13.5% of companies penciling in a net increase in marketing budgets during 2013 as a whole – the most positive forecast for two years.
Despite no change in market research budgets in Q2, the internet is leading the charge in budget growth with a net balance of 17.4% compared with the previous quarter’s 8.9%, while PR came in at 3.4% – the highest in three quarters of data collection.
Sales promotion (2.0%) main media advertising (1.9%) and direct marketing (0.6%) also saw upward budget revisions. However, there were falls seen in ‘other’ spend (-3.2%) and events (-0.9%).
IPA director general Paul Bainsfair said: “Companies are beginning to shake off the cloak of recession and are becoming more confident in the economy. This bodes extremely well for continued growth in marketing spend for the rest of 2013. These figures should send a very upbeat message to the wider economy.”