Marketing spend up but confidence low
|19 Jan 2012 12:23 GMT||Back|
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UK marketing spend has seen a slight rise in fourth quarter of 2011, according to the latest IPA Bellwether report.
This is the second consecutive quarter that marketing chiefs have increased their marketing budgets, but business confidence remains low.
Total marketing spend slowed to 0.6% in Q4, a significant drop from the 3.4% increase in Q3.
The marketing community is broadly split down the middle with some looking to spend their way out of financial gloom while others are cutting back.
One in five respondents (20%) recorded an increase in spend in Q4 while 19% recorded a reduction.
Another interesting trend is the shift towards online advertising, direct marketing and sales promotions, while spend on traditional media, such as broadcast and print advertising, is going down.
It is encouraging to see that companies are planning to raise their marketing spend in 2012 despite seeing their financial prospects for the next three months falling to the worst since the height of the financial crisis in early 2009.” said Markit chief economist and author of the Bellwether Chris Williamson.
“It seems that many companies are looking to fight the prospects of a challenging year ahead with increased promotional activity.”