IPA Bellwether inches ahead in Q4 2024 but more clouds on the horizon
The marketing community seems to be taking Rachel Reeves’ Budget and the Government’s other travails on the chin with a narrow majority of marketers seeing budget increases in Q4 2024 (+1.9% from a flat O in Q3) according to the IPA’s latest Bellwether Survey.
However the prospects for Q1 2025 look pretty dismal from here with inflation sticky and Government borrowing costs rising although the Bank of England may save the day to a degree with a modest rate cut.
According to Bellwether in Q4 events were up 12.3% from 9.9%, PR up 6.8%) and direct marketing up 5.6%. Main Media fell 4.3%.
IPA Director General Paul Bainsfair says: “Given the significant economic and geopolitical challenges that UK companies are facing, this latest IPA Bellwether Report paints an understandably cautious picture. However, it is encouraging to see that, despite these headwinds, UK companies are increasing their overall marketing budgets.
“Digging into the detail, it’s disappointing to see reductions in main media budgets, which remain the most effective channel for sustaining and growing brands in the long term. Cuts to this category are not uncommon in tougher times given their need for greater financial contribution, which is also why we’ll often see concurrent increases by marketers to other shorter-term media. All of which reflects companies’ concerns on profitability following the Budget.”