Marketing budgets are still growing, but the outlook is dimming, according to the latest IPA Bellwether report.
The cost-of-living-crisis and Russia’s invasion of Ukraine are at the centre of slowdown.
So we’ve been asking our leading industry experts for their take on the report…
Helen Spencer, Planning Director, Strat House
“The IPA Bellwether report is an eye-opening reminder of just how challenging the current economic climate is.
“And it’s no surprise that marketing budgets have slowed again in Q3 because of this.
“When any economic crisis hits, particularly a recession, marketing budgets are typically the first to be reassessed and pulled back.
“But, as the evidence from previous periods of uncertainty has taught us, those who have kept calm and carried on investing in their brand will undoubtedly benefit in the long-term.
“With the World Cup and Christmas, it’s going to be an even busier “golden” Q4 quarter for brands and an even more important time to showcase brand value.
“So, having a clear marketing strategy, with target channels, will be imperative to managing spend wisely and implementing it effectively.
“Rather than further growth in Q4, we may see brands push their budgets into Q1 as they continue to assess the economic situation.
Elliott Millard, head of planning, Wavemaker UK
“It’s interesting the way different channels are seeing budgets removed. With TV bearing the brunt of rampant media inflation, it may not be surprising to see budgets shifted around here.
“However, it feels like an oversight that the likes of press and OOH are experiencing harder declines than others. Despite both being scaled, public touchpoints that can act as reassurance in difficult times.
“It’s a trend that we’ve also seen in Wavemaker’s Media Mix Navigator, which allows brands and agencies to interrogate optimum media mixes.
“It raises warning signs that some brands are shifting to short-termism. Channels like press, for example, look to be disinvested in by the industry artificially fast.
“It’s not always the wrong thing to do, but there is also risk in over-investing at the bottom of the purchase funnel. Once a brand’s credentials have slipped, it becomes more expensive to rebuild them.
“For savvy brands (with means), there is also an opportunity here. There is a cost advantage to be had in underused space.
“Bearing in mind that OOH is currently an attractive option for bargain hunters as is – UK outdoor advertising prices have fallen by 3.1% since pre-covid times.
“Additionally, exploiting the channels others are not present in will likely give brands a leg up against their competition.”
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