Client demand for a more targeted marketing approach has fuelled a significant increase in both online and direct marketing budgets, triggering claims of a “bumper year” ahead.
According to the latest IPA Bellwether Report, marketers deployed a mixture of cost effective and high profile marketing tools to stimulate sales in Q2.
Spending on Internet marketing was revised higher than any other Bellwether category, up 14.7%, and a number of firms reported this form of marketing was used because it allowed them to target specific clientele in a cost effective manner.
Meanwhile general media – which includes TV, radio and cinema – also saw a double-digital revision, up 11.5%. This increase has been put down to brands wanting to maintain competitive advantage and exploit increased demand.
Direct marketing budgets also went up, albeit by a more modest 4%. However, as direct and digital are usually treated as one and the same within most client companies, it is more likely that this increase was direct mail-related.
Chris Williamson, chief economist at Markit and author of the Bellwether report, said: “Marketing spend is surging higher as companies remain upbeat about the future. The extent to which business confidence has shown continual improvements over the past year is remarkable, generating a major inflow of investment in marketing.
“Companies reported that spending on marketing and advertising activities showed the strongest rise for a decade last year. This year’s budgeted spend, which was already set higher than last year, has been revised up again in the second quarter, setting the scene for a bumper year.
“The survey also adds to a growing body of data which points to the UK economy sustaining strong growth as we move into the second half of the year.”
Related stories
Spend up as traditional media return
Budgets up, but online ads still rule
Online boom masks volatile adspend
DM and digital spend up, says IPA
DM spend cut as online rises
IPA: Ray of hope for DM spend
Even DM is hit as budgets shrivel up
Budgets slump as sales tumble
Digital and direct lead budget rise
Budget rises point to ‘bumper year’ for marketing http://t.co/m0Q9H1vB2w #directmarketing #digitalmarketing #advertising #crm