Online surge spearheads rise in marketing budgets

MARKETING budgets were revised up in the last quarter, ending a nine month period of decline for the ailing industry, according to the latest IPA/BDO bellwether report.

For the first time since the second quarter of 2007, budgets for all sectors were revised up. The internet saw the steepest increase by a wide margin and the largest quarter-on-quarter jump in the history of the report.

An encouraging 21 per cent of companies reported an upward revision in marketing spend, compared to 17 per cent that reported a reduction. The resultant net balance rose to a one-and-a-half-year high of 3.4 per cent.

Direct marketing budgets were revised upwards to the greatest degree for a year.

However, business optimism is falling, with marketing executives’ confidence for the industries in which they operate hitting a two-and-a half year low.

Meanwhile, a separate report suggests TV advertising has become more effective, with an average return of £1.70 for every £1 invested, 22 per cent higher than five years ago.