Poll Reveals Mixed Marketing Spend For Brands
The results from a new survey, carried out by the Institute of Practitioners in Advertising (IPA) and Markit among 300 big UK companies, revealed that one in five polled companies increased their marketing spend during the last quarter of 2011, whereas 19% lowered their investments in the area.
There is a clear tendency for changing priorities in marketing spend, as digital accounted for the biggest growth in investment – more than 13% over the period in total, while paid search saw a rise of almost 15%.
The number of companies that increased their budget on direct marketing moves, including sales promotions, was estimated to be higher that those who cut down on this measure, with the difference standing at 0.6%.
Markit’s chief economist Chris Williamson comments that brand owners are turning their backs on traditional marketing campaigns, as they are gaining confidence in online and direct marketing.
Businesses that hiked their budgets did so in a bid to retain their market share or to fund new projects, whereas the main reason for a downward revision of spending was cost management.
The majority of those polled plan to increase marketing spend in 2012, although the growth may be slower than in the years before the recession started.