The latest Bellwether report, which has been conducted on a quarterly basis since 2000, saw overall marketing budgets up 20.4%, compared to an 11% uplift reported in Q4 2013. The results are based on data from around 300 UK marketing professionals.
Paul Simonet, creative strategy director at agency Imagination, said: "The continuing improvement in the prospects of the events and experiences sector is a long-term market trend, as well as a short-term impetus. As confidence returns, marketers know that bringing their brands to life for consumers as experiences will be as important as reaching out to them through main media. Long may it continue."
Other highlights of the Q1 2014 Bellwether report included a net balance of +17.2% of companies reporting their budgets had been increased, compared to forecasts from the start of 2013 when 13.5% of companies were anticipating budget growth.
Main media advertising and the internet were the sectors which saw the biggest growths during the first three months of the year, reporting increases of 11.7% and 8.5% respectively. Other sectors which saw upward revisions to budgets included sales promotions (3.4%), direct marketing (2.6%), PR (2.1%) and market research (1.1%).
The IPA said the outlook for the 2014/15 financial year revealed a similar positivity, with a net balance of +26% of companies expecting to see growth, the best recorded by the survey for seven years.
Paul Bainsfair, director general at IPA, said: "With confidence remaining strong, forecasts revised up higher than ever before, and budgets being increased to the highest degree for seven years, the Q1 2014 Bellwether Report reveals that both the advertising industry and the wider economy are facing a future full of opportunity, innovation and most importantly of growth. This is a very good place to be. All very good news for the Government in the run-up to an election year."
Chris Williamson, chief economist at Markit and author of the IPA Bellwether report, added: "The spring Bellwether report reveals the most upbeat assessment of business and marketing spend that we have seen since starting the survey back in 2000. Last year saw the biggest rise in marketing spend since 2006, and 2014 looks set to be even better.
"If the initial increase in budgets for the year being the strongest since 2006 wasn’t already enough, the fact that companies have already revised these budgets higher to an extent not seen in the 14-year history paints a remarkably buoyant picture for the rest of 2014."
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