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.

Article continues below






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– 


What to read next

Marketing budgets in UK revised up marginally in Q4 2015
Vast majority of retail marketers plan to invest more in mobile marketing
Mobile to account for more than 50% of digital ad spending in 2015