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Financial News: UK Firms' Marketing Budgets Rise At Slower Pace

UK Firms' Marketing Budgets Rise At Slower Pace

01/17/2018 - 01:15:00 (RTTNews)

(RTTNews) - The marketing budgets of UK private sector companies expanded at the slowest pace in nearly two years in the fourth quarter of 2017, the IPA Bellwether report, published by IHS Markit showed Wednesday.

A net balance of 8.6 percent of companies raised their marketing budget compared to 9.9 percent in the previous quarter. This was the lowest since early 2016.

Although growth has weakened for a second successive quarter, marketing budgets have been continuously expanding since the end of 2012.

"Looking at quarter-on-quarter results it is clear that uncertainty from the wider geo-political situation continues to affect a cautious approach from marketers regarding their budgets," Paul Bainsfair, IPA director general, said.

Data showed that internet marketing increased for eight-and-a-half years, but the respective net balance fell to 10.9 percent, the lowest since the third quarter of 2016.

Meanwhile, main media advertising returned to growth after the previous quarter's stagnation. But the net balance was 1.7 percent indicating only moderate growth.

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