Marketing spend to increase in 2012, indicates survey
By Matthew Chapman, campaignlive.co.uk, Friday, 11 May 2012 09:26AM
A new survey of marketers shows the majority are likely to keep marketing spend level across all channels or increase it during 2012, agency intermediary FindGood claims.
Brands including Kia, HSBC, Iceland, Matalan, L'Oreal, Sony, Everything Everywhere, Spotify, B&Q, Boots, Diageo, Sainsbury's, Premier Foods, Nokia and McDonald’s took part in the survey, which gathered 333 responses. A total of 4,300 clients on FindGood's database of companies that use marketing agencies were contacted.
Some 37% thought budgets would increase, while 45% believed they would stay the same across all channels during 2012.
The data comes after the IPA Bellwether Report showed marketing spend for the financial year has risen slightly for the first time since 2008/09 and marketing budgets had been revised up for a third successive quarter.
This increase was marginal, however, with 22 per cent of companies reporting an upward revision of budgets during the first quarter of 2012, compared with 21 per cent that reported a reduction.
The Bellwether surveys 300 UK-based companies and respondents are primarily marketing directors/budget decision makers, selected to ensure data provides an accurate indication of actual marketing trends in the whole economy.
In the FindGood research, advertising is expected to see the most robust performance across the year with 85% of respondents believing that spend would increase or stay the same.
Meanwhile, digital is expected to see the most fluctuation with only 37% of respondents believing it would stay the same.
Some 41% thought budgets would increase, the highest percentage across all media, while 12% thought they would decrease, which was also the highest percentage across all media.
An additional 9% were unsure how digital budgets would change throughout the year.
At the time of the survey, which took place across the first quarter of 2012, some 67% of respondents did not have or have not used internal procurement teams to make their agency selection decisions.
Only 4% of respondents responsible for agency selection had used an intermediary or other marketing agency search and selection consultant to help choose an agency.
A majority of respondents (64%) would prefer to work with owner-managed firms, while 10% of respondents wished to work with an international agency network.
Some 74% stated they would prefer to work with small agencies with 35 or less employees.
Kimberly Mears, managing director at FindGood, said: "Of particular note is that marketers are still saying very clearly they prefer to work with smaller agencies - in an entrepreneurial sector that's good news indeed.
"It's very reassuring to see that budgets are once more on the march, suggesting that marketers see investment in marketing activity as the best way of growing sales whilst the economy remains becalmed."
Follow Matthew Chapman at @mattchapmanUK
This article was first published on campaignlive.co.uk
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