Buoyant marketing growth in store for 2007
The Q4 2006 Bellwether Report, the quarterly survey of marketing spend, has just been published (15th January 2007), revealing that the latest Q4 data signals a stabilisation of marketing budgets. Contrasting with the sharp downgrades seen earlier in the year this reflects improving business conditions. In fact, budget setting across the whole marketing spectrum will be the most buoyant in seven years for 2007-08.
Total marketing budgets were revised down in Q4, but only very marginally. However the internet saw by far the strongest upward revision, with the sharpest gain since the first quarter of 2000. Although traditional media still holds the lions share of marketing spend, the internet is now estimated to account for 5% of all marketing budgets.
Highlights of the Q4 2006 report include:
- Despite the improved performance in the second half of the year, 2006 is likely to have seen the weakest growth in marketing communications since 2002.
- In Q4, 17% of companies reported increased total marketing budgets while 18% reported a decrease, so only a marginal net decline.
- Internet marketing budgets out performed all other sectors in Q4, with a net balance of 31.5% of companies reporting an increase across all business sectors.
- Non-traditional marketing, including the internet and sponsorship is so far showing the strongest growth in future spend, followed closely by direct marketing and traditional advertising.
Chris Williamson, Bellwether Report author, NTC Economics: "What stands out from the Q4 survey is the resurgent growth of marketing signalled for 2007, with spend buoyed by healthy profits and business confidence. The strength of marketing spend, and economic growth as a whole, may well exceed many people's expectations. Also, while growth of internet marketing far surpassed that all other categories in Q4, main media advertising is by no means ready to be written off, with main media budgets set to show the strongest growth for seven years in 2007."
David Pattison, IPA President, Chief Executive, PHD: “The fourth quarter Bellwether Report indicates that business conditions are continuing to improve with 2007 set to be a positive one for all sectors, with indications that there will be strong growth in future spend for both main media and non-traditional marketing.”
The Bellwether report contains detailed analysis of the UK’s marketing economy, based on a survey of 250 companies, representing all key business sectors. The Bellwether report contains detailed analysis of the UK’s marketing economy, based on a survey of 250 companies, representing all key business sectors.
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Last updated 19/09/2008