The results of the latest IPA/BDO Bellwether survey reveal a boost in direct marketing budgets. 

Overall, UK marketing budgets are down in Q2 for the third consecutive quarter, but direct marketing budgets are up. Direct marketing budgets increased 2.5% in the three months to 30 June. 

Internet advertising budgets are also up, but by a smaller have seen a drop-off (up 1.9%, compared to a 9.3% increase in Q1). Internet search also grew – by 4.6% - a slight drop from the 4.3% increase in Q1. 

With 22% of UK firms reporting a cut in marketing budgets, it is clear that business confidence has fallen and the outlook for the economy is more pessimistic. 

Speaking to Marketing Week Mel Cruickshank, chairman of IPA’s direct marketing group said companies “are turning to direct marketing to provide return on investment against marketing spend”.

Chris Whitelaw, chairman of the IPA’s search group told Marketing Week that in the current economic climate, companies are looking to “immediate and efficient customer acquisition channels”. 

Andy Viner, head of media, BDO is more upbeat about next year: “Fortunately, the outlook for 2012 is looking more positive. There is certain to be an uplift in marketing expenditure connected with the 2012 London Olympics which will provide a welcome fillip to the marketing services industry after a challenging couple of years.”

Posted by

Sarah Wright