The IPA Q4 2021 Bellwether report predicts a “considerable” upswing in marketing budget growth in the upcoming financial year, with main media marketing expected to net “strong budgetary support”
As businesses step up post-Covid recovery efforts, the report shows a net balance of +17.4% of firms anticipating spending growth for 2022/23. With the threat of the Omicron variant now subsiding, close to half of Bellwether panellists were optimistic of overall budget growth in the coming financial year.
Meanwhile, despite the emergence of the new Covid strain and other economic pressures, the latest data signalled the second-strongest improvement in total marketing growth since Q1 2019, with Q4 2021 growth up at a net balance of +12.8% on the third quarter.
When it comes to ad spend, the Bellwether report anticipates an annual growth rate of 5.2% in 2022.
Commenting on the report, the IPA’s director general Paul Bainsfair said: “It is very welcome news that UK marketing budgets continue to be revised upwards… Going forward, new variants – alongside supply chain issues and heightened inflation – may indeed induce further wobbles.
“The key for businesses to weather these fluctuations will be, where possible, to invest in the longer-term and in brand-building media. As the evidence proves, brands that continue to invest in their marketing throughout the toughest of times come out on top.”
Michelle Wright, IPA chair for England and Wales and managing director of Gough Bailey Wright added: “It’s very good to hear that marketing budgets for 2022/23 are still expected to see growth, as now is not the time to pull back.
“Research shows that brands who push forward and increase their share of voice during an economic crisis will reap the rewards in sales, profits and long-term benefits.”