Survey Discovers Downturn in UK Marketing Spend Amidst Waning Optimism

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12th July 2012 16:43 - Media and PR

Called the IPA Bellwether survey, a study based on the quarterly responses of marketing executives at around 300 UK-based companies has shown that marketing budgets are now being reduced for the first time in a year due to economic pessimism.

The research revealed that business confidence has waned in the second quarter of 2012 after a surge of positivity in the first quarter – currently, the views of marketing executives on the future of their industries has slid sharply from plus 1 to minus 16.8%.

Nevertheless, British companies are seeing marginal cuts to their ad spend - while 23% of those surveyed are reducing their marketing budget, 22% are reporting a contrasting rise. This means that the survey was not able to conclude whether the UK’s total marketing spend in 2012 will show an overall increase or decrease.

Chief Economist at Markit and the report's author Chris Williamson commented: "Business confidence has taken a step back again, having perked up briefly at the start of the year, which has caused companies to review their planned spend on marketing this year. The focus has been on cutting back on main media advertising, direct marketing and below-the-line activities and reallocating that money towards sales promotions and the Internet, both of which are often cited as a means to quickly grow sales, especially in a downturn when customers are particularly cost conscious."

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