NEWS17 October 2013

IPA finds MR budgets down as marketing spend bounces back to near 13-year high

Financials UK

UK — A net 3% of companies have revised their market research budgets down in the third quarter of 2013, according to the latest Institute of Practitioners in Advertising (IPA) Bellwether report.

This compares to a net 12.3% of companies revising total marketing spend upwards – the strongest rate in nearly 13 years. By sector, internet advertising was +11.7% and main media advertising was +3.4%, while direct marketing, events and PR – like research – all saw net downward revisions.

Respondents to the survey sighted improved economic conditions and business revenues that in turn offered a platform for increased marketing investment, the IPA said.

Bellwether report author Chris Williamson, chief economist at Markit, said: “The Bellwether survey adds to the growing flow of upbeat data on the UK economy. Marketing spend looks set to rise sharply as companies boost their budgets to an extent not seen in the 13-year history of the survey.

“The increased appetite to spend on advertising and marketing is being fuelled by a surge in business optimism, with firms seeing their financial prospects to be the brightest for at least eight years.

“These survey findings are not only great news for the marketing industry but also for the UK’s broader economic recovery. The fact that business are starting to spend in earnest again suggests we may finally see a long awaited upturn in investment spending, which will help take the UK’s recovery onto a more sustainable footing.”

@RESEARCH LIVE

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