We may be drowning in data these days but how much of it is any use? Let’s hope the IPA’s long-running Bellwether Report is more accurate than some of the stuff that makes headlines.
Its Q3 report shows UK marketing budgets have been revised to the highest level in over two years with a quarter (25.6%) of marketers increasing their budgets against 11.3% reducing theirs, a net balance of +14.3%.
PR let the way with a net balance of 15% while events, one of the strongest sectors recently rose 11%. Main media rose a gratifying 9%, its highest level in a decade.
The report says that this positivity is likely to be down to a mix of GDP growth, Fifa World Cup activity, hot weather and tech-related investment, with high energy costs keeping inflation above target levels and the US-Iran war obviously a headwind.
But there’s an increasing amount of anecdotal evidence showing that the UK economy is muddling through somehow, as it often does, despite obvious signs of strain. Customer service, for example, has reached a nadir with ever more companies hidng behind bots to save money and keep customers at bay.
IPA director general Paul Bainsfair says: “With growth back at the top of the government’s agenda, it’s encouraging to see businesses increasing marketing investment at the strongest rate in more than two years, underlining advertising’s role as a driver of demand, competitiveness and economic prosperity.
“It’s particularly encouraging to see upward revisions across every Bellwether category, with main media recording its strongest budget uplift in nine quarters. The sharp rise in sales promotion spending is also understandable as businesses look to drive immediate results. But while promotions have their place, marketers should be wary of becoming hooked on short-term activation. Recent evidence suggests that over-reliance on promotions can erode long-term value.
“In uncertain times, the most successful businesses are those that balance demand capture with demand creation, recognising that an excessive focus on today’s sales can come at the expense of tomorrow’s growth.”
Are they? PR’s place at the top of the pile shows that this often ignoble art is thriving in the era of fake news and more people getting their information from the likes of Facebook. But maybe there is some light at the end of what’s been a rather dark tunnel.
