The Q2 2024 IPA Bellwether Report reveals a positive outlook for marketers as economic conditions improve. The report highlights the highest revision of marketing budgets in a decade and the second highest in nearly 25 years.
The net balance of UK businesses that increased their total marketing budgets rose from +9.4% in Q1 to +15.9% in Q2, marking the highest level since Q1 2014. The net balance has remained positive for the past 13 quarters, indicating sustained growth in UK marketing spend.
All Bellwether categories saw upward revisions, with events leading the way, increasing from +17.2% to +23.1%, reflecting a continued appetite for in-person connections post-pandemic. Direct marketing budgets rose for the sixth consecutive quarter, while sales promotions saw the third-strongest budget expansion.
Contrary to previous reports, main media budgets, including significant advertising campaigns on television and radio, returned to growth after a reduction in Q1. The net balance of companies revising budgets upwards was +3.5%, up from -0.7% previously, driven by online (+15.3%) and video (+7.8%).
With the UK economy gradually improving, a strong GDP expansion in the first quarter is likely to be followed by further growth in the three months to June. S&P Global Market Intelligence’s GDP forecast for 2024 has been revised to an annual growth of 0.6%, up from 0.2%.
Following these budget revisions, companies remain optimistic about their financial prospects, with the highest levels of optimism since Q3 2021. However, despite subsiding recession fears, elevated borrowing costs, high food and energy prices, and a new government mean the financial outlook remains uncertain. Only 16% of Bellwether participants were optimistic about their industry’s financial outlook.
Looking ahead, the IPA Bellwether Report provides reasons for optimism, with upward revisions for 2025 onwards as interest rates are expected to decrease and inflation to fall.
The full report can be found here.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
