TMCnet News
UK marketing spend soars on rising wave of optimism(Guardian (UK) Via Acquire Media NewsEdge) British businesses are on a marketing blitz, with an influential industry report revealing the biggest surge in spending since records began 14 years ago. In a sign that confidence about the economic recovery is taking hold, marketers increased their advertising, sponsorship, public relations and other promotional budgets for the sixth quarter in a row, according to the Bellwether report. The first three months of the year showed the sharpest upturn since the Institute of Practitioners in Advertising (IPA) began collecting Bellwether data, with a net balance of 20% of companies registering an increase, up sharply from the final quarter of 2013, when the increase was 11%. The survey measures the strength of the media market by subtracting the percentage of marketers reporting a decrease from those reporting an increase. During the full financial year to April, a net 17% of marketing executives reported an increase, marking the first net positive year since 2006-07. "This is a very good place to be," said IPA's director general, Paul Bainsfair. "All very good news for the government in the run-up to an election year." Optimism looks likely to grow this financial year, with data suggesting that 26% of companies expect to see growth, the best recorded for seven years. Traditional media such as television, newspapers and magazines have benefited most, reversing recent trends by performing better than internet advertising in the first three months of the year, indicating a growing willingness among marketers to commit to high-profile campaigns. Google, whose business model has wreaked havoc in the media industry, has emerged as one of the UK's biggest advertisers, raising its spending by 50% last year to pounds 45m, ahead of Mars and telecoms firm O2. In the Bellwether report estimates for advertising on TV, newspapers and magazines were revised upwards by 12% of companies, internet by 8.5%, and spending on events by 6% of companies. "The spring Bellwether report reveals the most upbeat assessment of business and marketing spend we have seen since starting the survey in 2000," said an economist and Bellwether author, Chris Williamson. "Last year saw the biggest rise in marketing spend since 2006, and 2014 looks set to be even better. "Companies are ramping up their markets and advertising expenditure in the face of growing optimism about the economic outlook. As higher marketing spend is also usually accompanied by rising business investment and job creation, this augurs well for economic growth to top 3% this year." 26% The net balance of companies expecting to see growth, the highest for seven years, according to the Bellwether data (c) 2014 Guardian Newspapers Limited. |