Marketing spend at six-year high
THE latest IPA Bellwether survey published today shows a sharp upward revision in marketing budgets in Q2 2013. The rise is the highest in almost six years.
Businesses have sought to take advantage of improving economic conditions by supporting sales efforts and new product launches. With 22% of companies reporting an upward revision to their marketing budgets during the latest survey period, compared to 15% that indicated trimming, the resulting net balance of +7.3% was the highest since Q3 2007.
The survey is produced for advertising body the IPA – Institute of Practitioners in Advertising – by Markit.
The positive showing for Q2 will bolster hopes that the sustained period of marketing cuts that have been evident since the beginning of the financial crisis will come to an end this year. A net balance of +13.5% of companies have pencilled in a net increase in marketing budgets during 2013 as a whole, the most positive forecast for two years.
The marked upward revision to total marketing budgets in Q2 was accompanied by growing confidence amongst companies regarding their financial prospects. Companies are at their most upbeat since Q3 2009 (a net balance of +27.6% being a sharp improvement on Q1’s +16.8%).
Bellwether has long been seen as a predictor of the overall state of the economy in the UK. The evidence provided in the Q2 2013 report adds to evidence that the UK economy is strengthening heading into the second half of 2013.
Chris Williamson, chief economist at Markit and author of the Bellwether report, said: “The second quarter is looking like one of the best we’ve seen since the onset of the financial crisis in terms of a positive signal for marketing budgets and the wider economy.”
