2011 is forecast to see an increase in marketing budgets following a rise in confidence levels after the recession. Spending channels with secure ROI such as email marketing are likely to see the increase initially as firms ensure their spending increase is safe.
IPA and BDO Bellwether carried out a report recently which found that nearly a quarter of UK marketers cut their budgets in the last quarter of 2010.
With new economic policy enforcements and an uncertain future still hovering over us, the cost cutting was implemented as a safety precaution.
However, the results of 300 firms ranked among the country’s top 1,000 have been distinctly brighter for 2011. The report found that marketing budgets would see an increase, particularly in spending channels that have a proven return on investment such as online marketing, email marketing and paid search.
President of the IPA and vice-chairman of the Ogilvy Group UK, Rory Sutherland said that although the findings were a mixed bag, some comfort could be taken from the fact that “initial budget setting for 2011 is currently higher than the actual 2010 spend".
