Direct marketing budgets increased more in the second quarter of 2007 than they have for almost a year, the IPA reports.

Published in the Q2 2007 Bellwether Report, the quarterly survey of marketing spend, the results show encouraging growth in the marketing sector.

Direct marketing budgets were only exceeded by main media advertising and within this the internet.

About 24 per cent of companies reported increased total marketing budgets while 15 per cent showed a decrease, leading to a net balance of 8.6 per cent – the highest since the first quarter of 2004.

Main media spend showed the strongest increase of a net 6.2 per cent, while internet marketing budgets outperformed all other sectors, with a net 21.8 per cent of companies reporting an increase.

Chris Williamson, Bellwether Report author of NTC Economics said the marketing sector was maintaining strength.

“There are certainly no signs from this survey that recent Bank of England base rate hikes have had an impact on business confidence,” he said.

“Importantly, increasing numbers of companies are investing in main media advertising to build brands and develop new products, which was reflected in the strongest upward revision to main media advertising budgets for seven years.”

The Bellwether Report is composed using detailed analysis of the UK’s marketing economy based on a survey of 250 companies and is published by the IPA: the industry body and professional institute for leading advertising, media and marketing communications agencies in Britain.ADNFCR-8000151-ID-18214636-ADNFCR

Related Topics: General Marketing