The Q2 2014 IPA Bellwether Report, released today (17 July), revealed that 15.2% of companies registered an increase in marketing budgets, which, although down on the Q1 2014 survey record of +20.4%, is the second highest reading recorded in the survey’s history.
Chris Williamson, chief economist at Markit and author of the Bellwether Report, said: "Marketing spend is surging higher as companies remain upbeat about the future. The extent to which business confidence has shown continual improvements over the past year is remarkable, generating a major inflow of investment in marketing.
"Companies reported that spending on marketing and advertising activities showed the strongest rise for a decade last year. This year’s budgeted spend, which was already set higher than last year, has been revised up again in the second quarter, setting the scene for a bumper year."
The report predicts an increase in adspend of 6.1% for the year as a whole, up from the 4.7% prediction in Q1, and a slower increase in adspend of +3.8% in 2015.
Spending on internet marketing was revised higher than any other marketing category at +14.7%. Within Internet, Search recorded a net balance upward revision of +12.9%.
Main media advertising recorded a net balance upward revision of +11.5%.
Other Bellwether categories recorded modest growth: Direct marketing (+4.0%), PR (+3.9%), and sales promotion (+3.0%).
The results of the Bellwether report are based on data from around 300 UK marketing professionals.