Ad budgets continue rise29th April 2015
UK marketers’ confidence is clear as advertising budgets increased for the tenth consecutive quarter for the first three months of 2015, according to the latest IPA Bellwether Report.
The net balance was an 11.8 percent increase in the first quarter, the same as the first quarter of 2014 but noticeably higher than the 6.1 percent net balance in the final quarter of the same year. This shows that the 2014/15 budget year ends with the greatest overall growth in a decade, with a net balance of 21.8 percent of companies boosting their marketing budgets.
It seems this growth is set to continue in terms of actual spend too, despite the uncertainty thrown up by the upcoming general election, with a net 28 percent of companies planning to increase their budgets in 2015/16.
The internet continued to display the biggest growth in the first quarter, going up 8.4 percent, followed closely by events budget which went up 5.7 percent, direct marketing went up 5.5 percent and main media going up 2.9 percent, while sales promotions went up just 0.6 percent. Declines were only reported in market research and PR, down 1.3 percent and 1.8 percent respectively.
The IPA’s director-general, Paul Bainsfair, said of the report: “With over ten successive quarters of growth in marketing budgets and the best budget year for marketing spend in a decade, this latest Bellwether provides welcome evidence of the extent to which clients recognise and value the significant contribution marketing communications makes to their business.”
Source: Campaign Magazine 17th April 2015.