This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/media/2013/jul/11/uk-marketing-budgets-ipa-bellwether-report

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
UK marketing spend rising as optimism grows, finds IPA Bellwether report UK marketing spend rising as optimism grows, finds IPA Bellwether report
(2 months later)
Marketing spend has been revised upwards at the biggest proportion of UK businesses in nearly six years, as companies begin to shake off the recession.Marketing spend has been revised upwards at the biggest proportion of UK businesses in nearly six years, as companies begin to shake off the recession.
The IPA's Bellwether report found that in the second quarter 22% of companies surveyed had increased their marketing budgets.The IPA's Bellwether report found that in the second quarter 22% of companies surveyed had increased their marketing budgets.
This compares with 15% that trimmed their budgets, resulting in an overall net balance of 7.3%, the highest net balance for a Bellwether report since the three months to the end of September 2007, before the financial crash.This compares with 15% that trimmed their budgets, resulting in an overall net balance of 7.3%, the highest net balance for a Bellwether report since the three months to the end of September 2007, before the financial crash.
The findings are in marked contrast to recent Bellwether quarterly surveys, which have revealed consistant declines in marketing budgets.The findings are in marked contrast to recent Bellwether quarterly surveys, which have revealed consistant declines in marketing budgets.
Overall, a net balance of 13.5% of companies have pencilled in a net increase in marketing budgets during 2013, the highest number in two years.Overall, a net balance of 13.5% of companies have pencilled in a net increase in marketing budgets during 2013, the highest number in two years.
The Bellwether report, researched on behalf of the IPA by Markit Economics, complements business surveys which have already signified that UK GDP is strengthening, leading to hopes that 2013 could prove a better year for economic growth.The Bellwether report, researched on behalf of the IPA by Markit Economics, complements business surveys which have already signified that UK GDP is strengthening, leading to hopes that 2013 could prove a better year for economic growth.
Marketing budgets have been heavily slashed during the recession, as companies looked to cut costs on their bottom lines. But the survey's findings would indicate a brighter future for marketers and the advertising industry.Marketing budgets have been heavily slashed during the recession, as companies looked to cut costs on their bottom lines. But the survey's findings would indicate a brighter future for marketers and the advertising industry.
Broken down by sector, marketing spend online was up 17.4% year on year, with PR up 3.4% and direct marketing up 0.6%. Marketing on events was down 0.9% in the quarter, while market research was flat.Broken down by sector, marketing spend online was up 17.4% year on year, with PR up 3.4% and direct marketing up 0.6%. Marketing on events was down 0.9% in the quarter, while market research was flat.
The Bellwether findings follow this week's figures from the Advertising Association (AA), which revealed that advertising spend in the UK increased by 2.4% year on year in the first three months of 2013 to £4.14bn, driven by TV.The Bellwether findings follow this week's figures from the Advertising Association (AA), which revealed that advertising spend in the UK increased by 2.4% year on year in the first three months of 2013 to £4.14bn, driven by TV.
Paul Bainsfair, the IPA director general, said: "Companies are beginning to shake off the cloak of recession and are becoming more confident in the economy. This bodes extremely well for continued growth in marketing spend for the rest of 2013. These figures should send a very upbeat message to the wider economy."Paul Bainsfair, the IPA director general, said: "Companies are beginning to shake off the cloak of recession and are becoming more confident in the economy. This bodes extremely well for continued growth in marketing spend for the rest of 2013. These figures should send a very upbeat message to the wider economy."
However, the chief economist at Markit and author of the report, Chris Williamson, sounded a note of caution. He said: "We need to be a little bit cautious as we've had false dawns before, in early 2010 and mid-2011, whereby events such as the Eurozone crisis and austerity-related government spending cuts hit business and consumer confidence.However, the chief economist at Markit and author of the report, Chris Williamson, sounded a note of caution. He said: "We need to be a little bit cautious as we've had false dawns before, in early 2010 and mid-2011, whereby events such as the Eurozone crisis and austerity-related government spending cuts hit business and consumer confidence.
"However, there seems to be fewer risks to the outlook on the horizon than in previous years, which means we are more optimistic than before.""However, there seems to be fewer risks to the outlook on the horizon than in previous years, which means we are more optimistic than before."
• To contact the MediaGuardian news desk email media@guardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication".• To contact the MediaGuardian news desk email media@guardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication".
• To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook• To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.