UK marketing budgets hit five-year low as Brexit uncertainty weighs
Marketing budgets at UK firms have fallen to their lowest level in more than five years as ongoing political uncertainty continues to take its toll.
On average, marketing budgets slipped to 9.3 per cent of overall company revenue this year, down from 11.4 per cent in 2018, according to research firm Gartner.
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The decline of more than two percentage points means UK marketing budgets have fallen well behind those of US peers.
“UK marketing budgets have seen a significant amount of variance over recent years,” said Ewan McIntyre, vice president analyst in Gartner’s marketing practice.
“At their peak in 2016, budgets sat at 11.6 per cent of company revenue. However, 2019 sees budgets fall to a lower level than at any point over the previous five years.”
The figures revealed that UK marketing executives have reduced their spending on digital ads, which this year made up just eight per cent of total budgets, compared to 11.8 per cent the previous year.
Technology budgets also took a hit in 2019, falling from almost 32 per cent of overall marketing expenses to just under 26 per cent.
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Despite the lacklustre figures, marketers remained optimistic about their prospects after the UK has left the EU.
More than three-quarters of respondents said their ability to meet performance goals will improve after Brexit, while 57 per cent expected a budgetary increase in 2020.