The positive showing will bolster hopes that the sustained period of marketing cuts that have been evident since the beginning of the financial crisis will come to an end this year. A net balance of +13.5% of companies have pencilled in an increase in marketing budgets during 2013 as a whole, the most positive forecast for two years.
Detailed data has shown that 0nce again digital is the key driver to overall budget growth (revised up 17.4%, compared with +8.9% in the Q1 study). Direct marketing budgets were also increased, by a rather less impressive 0.6%, although far better than Q1 which saw DM spend slashed.
The survey is in line with a number of wider business reports, signalling that GDP growth is strengthening in Q2, with the economy set to expand at a quarterly rate of 0.5%.
Rik Haslam, IPA Direct Marketing Group chairman and chief creative officer at Rapp, said: “Time will tell if we’re finally entering a period of sustained growth, it certainly feels that way for direct and digital agencies. Together those sectors are growing at a faster rate than at any time over the last six years.”
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