Marketing budgets continue to expand
40% of marketers are expecting an uplift in available budget in the coming year, according to the latest IPA Bellwether Report.
The increase in spend reflects the easing economic backdrop in the UK economy, with strong optimism towards financial prospects in the coming year.
Paul Bainsfair, Director General, IPA, said: “Ahead of a suspected lightening-up on some economic pressures closer to home in the coming months, and despite wider geo-political uncertainties, UK companies are once again recognising the value of advertising by revising their spend up this quarter.”
Investment into events saw high growth, as companies continued to show a strong appetite for face-to-face engagement with customers, the report said.
Main media, however, saw a reduction in spend, with marketers investing less in big-ticket out-of-home advertising.
In Q1, 19% of survey respondents were more optimistic towards their industry's outlook than they were in the previous quarter.
“Cost-of-living pressures and high borrowing costs has led household and businesses to retrench in recent times, making the market more competitive to earn and retain customer business,” said Joe Hayes, principal economist at S&P Global Market Intelligence.