News Article Published:
Tuesday, 17 July 2007
Category:
UK marketing budgets are increasing at the fastest pace since 2004, according to new research.
The Institute of Practitioners in Advertising (IPA) Bellwether Report for the second quarter of 2007 reveals that 24 per cent of companies are increasing their marketing budgets, while 15 per cent report a decrease.
Best performance was recorded for internet markets - with a balance of 22 per cent of firms reporting an increase in spending. Furthermore, over a fifth of firms now spend at least ten per cent of their budgets on the internet.
Bellwether Report author Chris Williamson, of NTC Economics, said that there were no signs that recent interest rate increases were affecting business confidence.
"Importantly, increasing numbers of companies are investing in main media advertising to build brands and develop new products, which was reflected in the strongest upward revision to main media advertising budgets for seven years," he explained.
Sir Martin Sorrell, chief executive of WPP, said that the report reflected his own firm's experiences.
"Our business in the UK has improved in the second quarter across the board. However, internet, direct and public relations remain the fastest growth categories along with media investment management.
"All very encouraging in a UK context, but not so in comparison to the other geographic markets. The UK remains the laggard, with growth in China, India and Russia leading the way."
The coming year is expected to record good growth internationally for marketing with the Beijing Olympics and the 2008 US presidential campaign.
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