Marketers boost events spend as budgets rise in Q2

Events spending was the main beneficiary as UK marketing budgets rose in the last year, according to the latest figures from the IPA.

The Bellwether Report for Q2 saw 24% of respondents reporting an increase to their marketing spend, while 17% reported cuts and 59% reported no change.

The report found that events were the biggest area of growth, with a net balance (respondents reporting an increase minus those reporting a decrease) of 11%. The next highest area of growth was direct marketing, which reported an increase of 3%.

Video saw a positive net balance of 8%, while other online spending fell. The report also found that budgets for sales promotions increased during Q2, while budgets for market research were cut.

Paul Bainsfair, Director General, IPA: “The overriding message from this quarter’s report is that UK companies continue to recognise the value of advertising.

“Encouragingly, we also see signs that businesses understand the importance of investing in long-term brand building; within the main media category, investment in video advertising has been revised up to its highest level in almost two years, while spending on other online activity – a shorter-term activation medium – has been cut for the first time in seven quarters.

“In light of such challenges, it is therefore more important than ever that companies play the long game and continue to invest in brand-building media that is proven to be better placed to drive sustainable business growth.”