POST Online Media Lite Edition


Marketing budgets revised modestly higher in Q1 2016

Staff writer |
The Bellwether survey for the first quarter of 2016 indicated the continued upward trend in marketing budgets.

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However, the rate of growth was modest as marketing executives remained under pressure to control spend at a time of deteriorating industry financial prospects.

While over a fifth of the survey panel (21%) recorded a rise in marketing budgets during the current quarter, 18% registered a reduction. The resulting net balance of +3.0% was better than the +0.5% seen at the end of last year.

However, it remained well down on levels seen throughout much of the preceding two-and-a-half years.

Sentiment about industry financial prospects dropped to the lowest since the start of 2013, (-6.5%) while optimism about respondents’ own company financial prospects slumped to the lowest level since late 2012 (+13.6%).

Greater use of internet and events came, however, at the cost of reduced spending elsewhere. Sales promotions (-8.4%) and direct marketing (-4.9%) both recorded sharp downward budget revisions.

Other marketing activities (-4.0%), PR (-4.0%) and market research (-3.1%) also registered falls. Main media advertising (+1.7%) enjoyed some modest growth.

In spite of a less-optimistic financial outlook, marketing executives are still upbeat about their own budgets for the coming accounting year.

A net balance of +23.3% of panellists are forecasting higher spend in 2016/17. â– 

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