The IPA Bellwether report for the first three months of 2012 shows business confidence among marketers is at its highest for two years. 

The Institute of Practitioner’s in Advertising’s (IPA’s) latest Bellwether Report Q1 2012 report reveals that 26% of marketers surveyed believe the financial prospects for the UK advertising industry will improve. This compares to just 10% in the previous quarter. 

Key events, such as the Queen’s Diamond Jubilee and the London 2012 Games will ensure that marketing spend continues to rise. 

However, rising confidence isn’t necessarily translating into bigger budgets. 

“Companies’ views on their financial prospects have risen to their highest for two years, but the brighter outlook has yet to be fully reflected in plans for marketing spend,” says Chris Williamson, chief economist at Markit and author of the Bellwether. 

UK marketers increased their annual budgets for the third quarter in a row, albeit slightly, contributing to the first rise in annual ad spend in four years. 

Not all companies are raising their budgets – 22% reported a budget increase while 21% reported a downward revision. 

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Smarayda Christoforou