NEWS13 December 2022

Confidence in marketing rises despite economic pressures

Cost of Living News Trends UK

UK – Confidence in the performance of the marketing industry is on the rise despite increasing concern about the UK’s economic performance, according to research from the Chartered Institute of Marketing (CIM).

Jar of money labelled 'budget'

CIM said that research for its The CMO 75 report indicated there was a two-point rise in confidence for the UK marketing sector in 2023 compared with the 2022 edition of the research, with a five-point increase for those working with international brands.

However, there was a 16-point drop in confidence in the prospects for the UK’s economy, compared with the previous year.

The figures are based on 20-minute Opinium interviews with 75 leading marketers conducted in the second half of 2022, with each person cross-referenced against major industry indexes.

The proportion of marketers believing that the sector is stronger than it was pre-pandemic was at 53 per cent, in comparison with 52 per cent last year and almost double the proportion who feel the sector is weaker ( 27%).

A majority ( 59%) of those interviewed saw marketing budgets rise over the last 12 months, with 18% seeing a cut.

CIM said 53% expected budgets to grow with a median increase of 11% to 20%, which was lower than the 21% to 30% achieved in 2022.

The decrease in budget expectations was put down to the cost-of-living crisis ( 29%), the challenge of attracting and retaining customers ( 25%) and changing consumer behaviour ( 11%).

Severe skills shortages and rising wage bills were noted in the research, with 73% concerned about skills shortages, followed by recruitment ( 72%) and staff retention ( 61%).

Two thirds ( 64%) of those polled felt there was too little regulation of social media, and more than half ( 56%) felt that it was their responsibility to protect their clients and customers on social platforms.

Chris Daly, chief executive at the CIM, said: “The coming year will test the resilience of our industry, but it is clear the majority of professional marketers see a silver lining in the storm clouds.

“With household budgets under pressure from rising costs, and wages shrinking due to inflation, brands have the opportunity to benefit from both those trading down from premium offerings, or looking for affordable luxuries to compensate for compromised lifestyles.

“Attracting and retaining these new customers will be key, as will negotiating sufficient resources from the wider business to unlock much needed growth.”