LONDON: British companies increased their marketing budgets in the third quarter, bringing to an end a three-quarter run of cuts, as they fought to maintain their positions in competitive markets, a survey showed on Thursday.
The IPA Bellwether report said the close relationship between ad spend and economic growth suggested gross domestic product would strengthen in the third quarter, though risks remained as some marketing executives said they were losing confidence in their industries.
"That we are seeing a further decline in confidence overall continues to reflect the uncertain financial climate that businesses are operating in," IPA President Nicola Mendelsohn said. "This rise in spend demonstrates that many companies are trying to buck the downward trend."
Overall, around 21 percent of companies revised up their total marketing budgets, compared with 17 percent that reduced their spending.
The report, which is based on a survey of around 300 UK-based companies, said the increased spend resulted in a headline net balance of the survey of 3.4 percent, a one and a half year high.
Of the different categories, the Internet registered the steepest increase.
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