Marketing budgets grew for the third successive time in the fourth quarter of 2021, the latest IPA Bellwether report has showed.
The survey of the top 1,000 UK companies found that 20.1% of respondents increased budgets and 14% cut them, giving a net balance of +6.1%.
However, this was a slowdown from the third quarter of 2021, when 12.8% of respondents increased their budget.
The report's forecast for annual adspend growth has consequently been lowered from 6.2% to 5.2%.
Such caution is down to three factors, according to the Bellwether authors: new variants of coronavirus, such as Omicron; supply chain disruption throughout 2021; and price inflation due to the latter.
Paul Bainsfair, IPA director general, said these factors may yet induce “further wobbles”. However, he added: “The key for businesses to weather these fluctuations will be, where possible, to invest in the longer-term and in brand-building media. As the evidence proves, brands that continue to invest in their marketing throughout the toughest of times come out on top."
Looking towards next year, brands have been trying harder than ever to understand their clients. Market research was the top-performing category this quarter, giving a net balance of 7%.
This marks the strongest performance for market research since the category began to be tracked by the Bellwether report more than nine years ago. It is also a strong increase since the third quarter report, when the net balance stood at +0.7%.
Speaking to ±±¾©Èü³µpk10, Richard Robinson, managing director of intermediary Oystercatchers, said: “Brands and agencies alike must get ahead of staff and skillset shortages by learning their way out of the crisis and matching their intent with the optimum partnerships for profitable growth. “
Direct marketing was the next best performer (+3.8%), followed by main media advertising (+3.1%). Within main media, there was growth in video and online, but cuts to published brands, audio, and out-of-home advertising.
Sarah Bauman, managing director of VaynerMedia, said it was “great to see” predicted growth. However, she added that businesses should be cautious in their optimism.
“We would be unwise to assume this growth in main media advertising is guaranteed – the key is to stay focused on consumer-centric, culturally relevant work where we can get the most underpriced attention – and to be relentlessly focused on business outcomes."
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