IPA Bellwether Report Shows Weakest Growth in 3 Years
Total marketing budgets were revised higher during the third quarter of 2018, extending the current period of growth to six years, but to the weakest extent in almost three years. This is according to the Q3 IPA Bellwether Report, published last week (17 October).
– Cost pressures and growing uncertainty weigh on budget
– Internet marketing spending plans continue to provide key support to growth
– Most downbeat assessment on industry-wide financial prospects since Q4 2011
– Muted ad-spend growth forecasts for 2018 and 2019
The report, which has been conducted on a quarterly basis since Q1 2000, shows that almost 21% of panel members revised total marketing budgets up in Q3, while around 18% observed a decline in spending plans, yielding an overall net balance of +2.5%. Although positive overall, latest data signalled the weakest growth in total marketing budgets since the fourth quarter of 2015, with the net balance down from +6.5% in Q2 2018.
An increasing onus on firms to engage in digital forms of advertising drove yet another strong quarterly expansion in internet-based marketing during Q3, as signalled by a +13.6% net balance of firms observing upward budget revisions. The finer details also revealed that search/SEO and mobile marketing budgets also received boosts (net balance of +5.8% and +1.9% reporting higher expenditure, respectively).
Marketing executives were again given more discretion over spending plans on large scale marketing campaigns, such as those relating to TV, radio, or cinema. The net balance of firms observing budget increases for main media advertising was broadly unchanged from the preceding quarter at +4.9% (+4.8% in Q2).
ExchangeWire spoke exclusively with some of the online advertising industry’s top thought leaders about what the latest report means.
Appetite Creative MD, Jenny Stanley, notes that:
“To some extent, the recent IPA Bellwether report makes for disappointing reading with estimated ad spend growth predicted at just 0.7% for next year. However, the view that the following decade will benefit from a heightened and sustained growth period provides a welcome pick me up for marketers. During the slower growth period of 2019, marketers must focus on delivering innovative creative marketing if they want to maximise their ad spend across all digital channels. Now more than ever, marketers must push the boundaries on delivering a big idea through cutting edge creative formats and channels.”
Full report : https://www.exchangewire.com/blog/2018/10/22/ipa-bellwether-report-shows-weakest-growth-in-three-years/