NEWS17 January 2013

IPA Bellwether points to increased spend on MR in Q4

Financials UK

UK — UK marketers increased their spend on market research in the fourth quarter of the year, according to the Institute of Practitioners in Advertising’s (IPA) Bellwether Report, with a net 0.7% of survey respondents reporting upwards revisions to budgets.

In a new survey question, 12.8% of marketers signalled a rise in spend for market research in the final quarter of 2012, compared with the 12.1% that cut budgets. Around 75% said their market research budget had no change.

Internet advertising budgets were also revised up (net 5.6% of respondents), however all other main media formats were flat.

For overall marketing budgets 17% of companies signalled a rise in spend in the final quarter of 2012, compared with the 16% that cut budgets – a net balance of 1.1%.

Despite a marked boost in confidence over the Christmas period, marketers admitted that planned rises in 2013 budgets would be minimal – a net balance of roughly 1% – due to the ongoing difficult economic environment. Forecasts for the next five years are more positive, however, with adspend tipped to steadily accelerate to 2017.

Nicola Mendelsohn, IPA president, executive chairman and partner at Karmarama, said: “Marketing budgets have been revised up, albeit marginally, to the highest rate in over a year. Advertisers also have a growing sense of cautious optimism about their own financial prospects and are planning to increase their 2013 budgets higher than 2012 levels.

“So while we continue to operate amidst a difficult economic backdrop, we should nevertheless take encouragement from these figures, and do all that we can to remain positive in meeting the challenges we face.”