Business Confidence Jumps In Q1 With Marketing Spend Up Again
This upward revision to spend adds to evidence that the UK economy skirted recession in Q1.
Says Nicola Mendelsohn , IPA President, Executive Chairman and Partner, Karmarama: "It's encouraging to see that marketing budgets are up again for the third quarter running, leading to the first rise in annual spend in four years. Business confidence is returning which is also welcome news. Companies have also set their budgets higher for 2012, albeit with a much greater degree of caution than in recent years due to the continuing uncertain economic climate. Yet there is no doubt that key events such as the London 2012 Games and the Queen's Diamond Jubilee will do much to ensure that marketing spend continues to rise."
Says Chris Williamson, Chief Economist at Markit and author of the Bellwet h er: "Companies' views on their financial prospects have risen to the highest for two years, but the brighter outlook has yet to be fully reflected in plans for marketing spend.
"Although current marketing budgets were revised higher for the third consecutive quarter, the increase was only marginal. Furthermore, although companies have set their marketing budgets higher for 2012-13 on average, they have started 2012 with the most cautious approach to spending for three years."This perhaps reflects a more pragmatic approach to budget setting, given that initial increases in budgets were steadily revised away in the past two years, as weaker than expected sales caused firms to cut marketing costs. However, with the coming year seeing events such as the Olympics, Diamond Jubilee and Euro 2012, it is likely that the year will again see an increase in marketing spend." Note to editors:
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