The latest IPA Bellwether survey has found that marketing spend is at its highest level in the 13 years since the report has been published.
It found a net increase of 12.3 per cent in companies registering an increase in advertising budgets, providing “a welcome boost” to the industry and that the UK economy is “on the rise again.”
Real UK ad spend growth is now projected to be 2.4 per cent 2013 and 3.6% in 2014, it said.
“This latest Bellwether report will provide a welcome boost to our industry, building on last quarter’s results. It indicates that companies are beginning to move forward away from the recession and that the UK economy is on the rise again. This optimism will send a continued upbeat message to the advertising industry and the wider economy,” said IPA director general Paul Bainsfair.
Chris Williamson, chief economist at Markit and author of the Bellwether report added: “The Bellwether survey adds to the growing flow of upbeat data on the UK economy. Marketing spend looks set to rise sharply as companies boost their budgets to an extent not seen in the 13-year history of the survey.”
He continued: “The increased appetite to spend on advertising and marketing is being fuelled by a surge in business optimism, with firms seeing their financial prospects to be the brightest for at least eight years.
“These survey findings are not only great news for the marketing industry but also for the UK’s broader economic recovery. The fact that business are starting to spend in earnest again suggests we may finally see a long awaited upturn in investment spending, which will help take the UK’s recovery onto a more sustainable footing.”