UK marketing budgets are at their highest in almost a decade, according to an IPA report.
Just over one quarter of respondents saw their budget rise in Q4 of 2023, though 11.3% of marketers did register cuts to budgets.
Events are where most marketers allocated their budget in Q4 of last year, according to the report, while market research was bottom of the list in terms of spend.
Paul Bainsfair, director general, IPA, said the report shows companies are continuing to advertise and build brands through challenging economic conditions.
“However, we also saw anecdotal feedback that some companies noted plans to price their goods and services more competitively in a bid to gain market share.
“While this is good news for the consumer, it is further proof that companies are experiencing a tough trading environment,” Bainsfair said.
The data showed 32.4% of firms felt more optimistic towards their own company growth prospects but felt a lack of confidence in their sector as a whole.
“With the evidence showing that investing in advertising helps protect sales when businesses raise prices, it may prove more profitable for companies to increase their advertising than reduce their pricing,” added Bainsfair.