Advertising budgets in the UK have seen a slight growth of 1% year-on-year, a new report the Institute of Practitioners in Advertising (IPA) has found.
The IPA Bellwether report, which collected data from 200 marketing professionals across the UK, reveals that close to one in four companies have hiked their spending on advertising, while a smaller proportion (21%) have contracted their marketing budgets. Internet advertising spending recorded the biggest rise of 7.8%, followed by spending on SEO, which came in with a net balance of 4.7%, Freelance UK website reports.
Although the growth for the first quarter of 2012 amounts to just 1%, what is more encouraging is that this was the third consecutive quarter of expanding marketing and advertising spending. Many firms have more optimistic expectations for 2012 and as confidence improves, new strategies and products are being employed, which in turn results in more spending, IPA explains in the report.
Similarly, marketing executives also share this optimistic view, with their business confidence reaching its highest level in two years, settling at 19.1%, compared to minus 12.4% in late 2011.
IPA President Nicola Mendelsohn comments that the upcoming London Olympic Games this summer are a major driver for increasing advertising spending, together with events like the Queen’s Diamond Jubilee. However, despite increasing confidence, many companies remain cautious over increasing their budgets, with plans for slower growth than previous years.