IPA Sees UK Ad Spend Up This Quarter
Adrian J Cotterill, Editor-in-Chief
According to the latest Bellwether report from the IPA, advertising spend in the UK is set to increase over the current quarter.
More than a quarter of marketers said they had increased budgets for the three months ending September, compared with 13% who said they had reduced them, giving a new balance of 12.2% despite falling confidence among marketers.
Internet spending was revised up to a net balance of 6.4%, but this was actually at a two-and-a-half-year low. Paul Smith, senior economist at Markit and author of the Bellwether report said “At the headline level, the Bellwether for Q2 2015 provided further positive news on marketing activity in the UK, with growth being extended to just short of three years and at a rate that remained historically strong,”.
“Below the surface, however, the underlying drivers of growth are a little harder to read. On the one hand, companies are showing an increasing willingness to engage in corporate hospitality, conferences and sponsorship.
“But belying this confidence is an increased willingness to engage in discounting and promotional activities designed to support sales at a time when the economic and financial outlook for companies has become just a little more uncertain. Whereas we see growth holding up in 2015 overall, the latest survey supports the projection of softer expansion further out.”
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