Marketing budgets grow but not for market research

The most significant growth was seen in internet and main media advertising categories and the Q1 results mean growth has been sustained for four and a half years now.

However, market research budgets have now contracted for seven quarters. With just under 8% of panellists signalling growth, compared to more than 17% that indicated a contraction, the resulting net balance of -9.9% was lower than the previous quarter’s -2.5% and the worst reading in four-and-a-half years of data collection.

Q1 2017 Bellwether

Looking at marketing budgets going forward in 2017/18, UK marketers have a positive outlook, with a net balance of +26.1% of companies signalling growth in their total budgets for the coming year.

Although this clearly indicates confidence, expectations continue to lag those seen prior to the start of the global financial crisis in 2008.
   
Paul Bainsfair, director general, IPA said: “Once again the Bellwether shows that while the impact of Brexit remains uncertain, marketers are continuing to invest in marketing. Furthermore, despite the current, turbulent digital ecosphere, it is clear that marketers are attracted to the cost-effectiveness of digital advertising and its ability to reach and accurately target their consumers.”