Marketers report increased adspend despite falling confidence amid Brexit
According to the IPA’s Bellwether Report, UK marketers have “held their nerve” in the face of an uncertain business climate following the UK’s Brexit vote.
In Q3 of 2016 13.4% out of 300 marketers surveyed increased their ad spend.
An increase of 10.7% from Q2.
However, the advertising market remains uncertain since Brexit having an impact on financial prospects over Q3.
12.1% of marketers were pessimistic about their industry’s financial prospects down from -8.1% in Q2 and the lowest recorded figure by the survey since Q4 in 2012.
However, they seemed more confident in their own businesses during Q3 with 31% expressing optimism and a net balance of 10.6% but down on Q2 which posted 13.7%.
The report forecast ad spend up 1.9%, from the expectation of 0.2% decline, but it expects a 0.7% drop in 2017.
A growth of adspend is projected for 2018 up +0.2% , 2019 +2.4%, 2020 +2.7%
Events budgets grew in Q3 by +9.9%
Internet budgets grew in Q3 +4.9%.
Main media advertising fell by 3.8%, in Q3 compared to a rise in Q2 of 9.3%.
PR was down -1.1% in Q3 whilst market research fell by -2.3% and sales promotions by -4.0%
The report further shows that a positive forecast is now predicted for ad spend growth in 2016 and that with the negotiations in Brexit beginning, a tougher 2017 seems inevitable.
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