IPA Bellwether Report – 2023 Q319 Oct 2023 07:54
Total UK marketing budget growth slows to year-to-date low, but main media spending rises again
Key points:
▪ Efforts to protect brands and capitalise on competitor hesitancy supported budget expansions, although total marketing spend growth slowed in Q3
▪ Main media marketing budgets rise at the strongest pace since Q1 2021, driving overall upturn
▪ Industry-wide business confidence remains depressed amid gloomy economic outlook, but confidence edges slightly higher for company- own prospects
▪ Adspendsettofallinrealtermsuntil2024asUK economy poised for recession
The latest Bellwether survey revealed another quarter of total marketing budget growth, extending the current sequence of upward spending revisions to ten successive quarters. There was however a moderation of the upturn as persistent inflationary pressures, further increases in borrowing costs and a subsequent deterioration in the UK economic outlook drove some companies to be more cautious with their budgets.
There was a strong proportion of the survey panel that expanded their total marketing spend in the third quarter of the year, with 21.1% of Bellwether firms increasing spending in the three months to October. However, with a sizeable 15.8% registering downgraded budgets, this resulted in a net balance of just +5.3% (down from +6.4% previously), pointing to the weakest quarter of total marketing budget growth since the final quarter of 2022.
https://www.pmi.spglobal.com/Public/Home/PressRelease/da52d49c113642e9b19d6d7f9ec302b2