COMPANIES are spending more on marketing than they have for almost six years, according to a survey conducted by the Institute of Practitioners in Advertising.
According to the latest IPA Bellwether survey – published this morning – there has been “a sharp upward revision in marketing budgets in Q2 2013″.
Says an IPA media release: “Businesses have sought to take advantage of improving economic conditions by supporting sales efforts and new product launches. With 22 per cent of companies reporting an upward revision to their marketing budgets during the latest survey period, compared to 15 per cent that indicated trimming, the resulting net balance (calculated by subtracting the percentage reporting a downward revision from the percentage reporting an upward revision) of +7.3 per cent was the highest since Q3 2007.”
Adds the release: “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 per cent 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 per cent being a sharp improvement on Q1’s +16.8 per cent).”
By sector, internet-based marketing had a net balance of 17.4 per cent up, with PR-based marketing up 3.4 per cent, sales promotion two per cent, ‘main media advertising’ 1.9 per cent and direct marketing 0.6 per cent.
Market research budgets were unchanged, while there were falls in ‘other’ (-3.2 per cent) and events (-0.9 per cent).
Read more here.
Tomorrow: The Friday Column, Claire Wood, chair, IPA Scotland.