IPA Bellwether Report: Q2 2024 key takeaways
Let us share our key findings from the IPA Bellwether Report for Q2 2024 and explore what these emerging trends mean for businesses and marketers alike.
Marketing budget growth reached its highest level in over a decade.
The report brings promising news for the UK marketing industry, reflecting the broader economic upturn. Paul Bainsfair, director-general of the IPA, highlighted the resurgence in confidence, noting the "real vim and vigour" behind UK companies' marketing spend intentions, driven by a brightening economy, easing inflation, and the change in government back in July 2024.
The percentage of companies raising their budgets jumped significantly, from +9.4% in Q1 to +15.9% in Q2, marking the most substantial increase since Q1 2014. Brands are now expressing increased long-term optimism, supported by a decrease in negative sentiment regarding financial prospects, which fell from 19.5% to 15.4%.
Businesses are expected to remain somewhat cautious.
Although the mild recession at the end of last year may have passed, several recovery challenges persist. Elevated borrowing costs, reduced government financial support, and continued high food and energy prices present risks. While inflation levels have decreased, these reductions have not yet translated into lower prices and continue to strain household finances. Businesses should address these challenges by prioritising value and trust in their messaging to customers.
Events led to budget increases, while main media saw a return to growth.
Events: Continued to lead with the highest upward budget revision, rising by +17.2% after a substantial +23.1% increase in the previous quarter.
Direct marketing: Recorded its sixth consecutive quarter of budget increases, rising from +7% to +8.9%.
Sales promotions: Experienced the third strongest expansion, with budgets increasing from +4.9% to +6.9%, marking a one-year high.
Main media: Budgets increased by +3.5% after a slight drop of -0.7% in Q1, driven by a surge in online and video advertising. However, other areas, such as out-of-home, remained stagnant, while audio and publishing saw declines of -5.5% and -6.3%, respectively.
Market research: Grew from +1.4% to +3.2%, reflecting renewed interest in data-driven insights.
Public relations (PR): Saw an uptick, with budget growth increasing from +0.6% to +2.6%.
Source: IPA
While the economic environment still presents challenges, the outlook for the remainder of 2024 and beyond remains optimistic. With anticipated declines in interest rates and further easing of inflation, advertising spend is expected to grow steadily.
If you would like further information on what this means for you and your business, please get in touch with Jasman Ahmad, Strategy Director, at jasman.ahmad@accordmarketng.com.
Anna Henderson
Our Strategy and Research Executive, Anna, combines fresh perspectives with a strong analytical foundation to develop innovative marketing strategies for our clients.
