According to the latest IPA Bellwether report, Internet marketing is the strongest growth for companies targeting digital and social media, and ad spending is steadily increasing as more improvements are expected after 2020.
However, attention was paid to companies that reported no change in marketing spending due to political and economic uncertainty.
After returning to growth in the quarter of this year, which was revived by a more aggressive approach to offset the company’s risks, the latest Bellwether data showed net issue rates from + 8.7% to + 0.0%
Marketers modify internet, main media and event marketing budgets
Nevertheless, marketing executives were given additional discretion over internet-based advertising in the second quarter, which can be seen by the net balance of + 11.5% (first quarter + 17.2%) of companies reporting budget growth. Search / seo budgets on the internet have also grown steadily (net balance + 14.2% to + 9.9%).
Major media advertising budgets also increased significantly in the second quarter. Some companies have used large table marketing campaigns to increase brand awareness and expand their customer base. There has also been a suggestion that increased competition pressure has driven marketing into a defensive strategy. Overall, the company’s net balance of + 5.6% reported a larger major media marketing budget (first quarter + 5.2%).
Another Bellwether category that recorded second quarter growth was the event. The net balance has increased from + 3.4%, the highest since the first quarter of 2018, to + 4.8% and supports the forecast of the beginning of the year, where the event budget is expected to increase during the 2019/20 fiscal year.
According to Joe Hayes, economist of IHS Markit and author of the Bellwether Report, “The expansion of the first quarter marketing budget did not last long, but the larger economic development in the second quarter showed that the bigger challenge lies on the horizon. UK business. The company accordingly retracted and adjusted the belt tightening and one more wait. ”
Internet marketing was still a bright spot. We are constantly growing in the digital space, and our panelists are oriented towards continuous drive through technology improvements and social media channels. The company continued to increase its major media marketing spending as brand awareness and building initiatives progressed.
Joe Hayes, economist at IHS Markit and author of the Bellwether Report
Acceleration expected to accelerate after 2020
Bellwether maintains a cautious stance toward 2019, expecting annual advertising spending growth of 1.1% throughout the year. Brexit’s ongoing uncertainty and various factors support the booking, and the recent developments in the UK economy this year have been almost negative to date.
Nevertheless, Bellwether is eager for companies to accelerate their marketing efforts once uncertainties are resolved, and they expect it to work positively in the line of advertising after 2020. After 1.8% growth in 2020, the growth rate is expected to be higher in 2021 (2.0%), 2022 (2.2%) and 2023 (3.1%).
IPA Secretary-General Paul Bainsfair said: “With the fall in consumer confidence between Boris, Jeremy and Brexit, Bellwether is not growing at all in the UK’s overall marketing budget this quarter. The vast majority of companies were stuck until a clearer political and economic path was presented. ”
But some The company is revising its investment in major media ads. Is where they will build long-term growth of the brandIt is important to overcome this difficult time.
Paul Bainsfair, Director, IPA
The company’s outlook has been muted.
Bellwether panel members were negative on the second quarter financial outlook and received more optimistic reviews of the industry as a whole and company-owned finance than the opening quarter of 2019.
While exactly 34% of marketing executives optimistically reported a pessimistic outlook for their industry, about 8% were optimistic, but the resulting net balance (-25.6%) was the second-most negative rating since the fourth quarter of 2011. (Only by reading Q4 2018 -28.6%). It’s also a drop from -22.6% in the first quarter’s net balance.
The latest data also pointed out that the company’s financial outlook is more negative. Net balance fell from -2.7% in the first quarter to -9.8%.
Kirsty Giordani, managing director of the International Advertising Association (UK Chapter), urged advertisers to go beyond short-term thinking, despite the mixed outlook: “We are in an uncertain political climate, but we measure success and spend Allocate but I need a bigger picture view. For example, spending on Internet marketing remains strong and there has been another increase in major media, digital and social as well. The upward trend in these areas represents a shift to long-term thinking for marketers looking to invest in channels and tactics that can support steady brand growth over time. ”
Click here to download the full Q2 2019 IPA Bellwether report
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