IPA Bellwether: Industry reaction

Jo Lyall, Managing Director, Mindshare UK

In a slowing market the focus on effectiveness becomes even more important as marketers must find opportunities to innovate and learn whilst also banking on tried and tested channels.

Digital budgets continue to see growth as advertisers can capitalise on the improved effectiveness that data and technology can bring.

Mobile advertising might have stalled in its growth but the channel remains essential to many business models and consumer needs; we have recently conducted research to show that technology such as augmented reality will start to play a key part in consumers purchasing decisions as it evolves from the ‘evaluation’ or ‘post-purchase’ stages to facilitate direct purchase – so we believe that mobile will still be a strong contender for marketing dollars in the years to come.

Michael Todd, Head of Advertising Industry Relations, Google UK

The continuing slowdown in marketing budget growth is concerning, but symptomatic of the continuing Brexit-related economic uncertainty.

Despite the gloomy outlook, there are reasons to remain optimistic. First off, we’re starting to see UK wages rising again; the Bellwether report finds that company financial prospects remain positive and 2018 adspend predictions have been revised up.

From a digital perspective, 35 quarters of consecutive growth for internet adverting is hugely positive. This continued investment growth trend suggests that marketers are increasingly (and rightly) seeing the internet as a place for both customer engagement and longer term brand building.

Evangelos Sideras, joint MD, UK, Media iQ

While budgets continue to lack growth, marketers need to ensure they are spending what they do have wisely. Using marketing intelligence tools will ensure that adverts are targeting the right audience, through the right channel, at the right time, in the right moment.

Investing in this area will allow for access to data that can inform, not only digital media campaigns for the best possible results but also genuinely impact business outcomes. Data science, insights, and AI can be used to influence campaigns through all channels, as well as look to solve business challenges outside of advertising KPIs.

As budgets steady, it’s important that planning conversations are opened up across all mediums to truly make the most of what’s available.

Katherine Munford, Managing Director, Data2Decisions

The latest IPA Bellwether report reflects the reality of challenging market conditions on marketing budgets; during uncertain times, it is not surprising that growth in marketing spend is slowing down in some sectors.

Despite more modest growth, the successive increase in marketing spend over the past few years suggests that brands still appreciate the value of marketing as an important part of their business.

We live in a complex and constantly changing world – one in which marketing can be a powerful force for growth if you know where to focus. Marketing effectiveness has become increasingly important for brands as they weather continuing challenges.

Increased online marketing budgets point to the importance of performance marketing when market conditions are challenging, and although increased investment in digital has proven to be effective in delivering short term sales targets, marketers should still look to achieve the right balance between brand building media and sales activation strategies.

Going forward, effectiveness should be measured in a holistic and connected way, to deliver both long and short term business growth.