Marketing and advertising sector “optimistic for 2013”

Prospects for the marketing and advertising industry are looking up after a study of SMEs in the sector found that around two thirds expect growth in 2013.

With SMEs and entrepreneurs seen by many as key to the country’s economic revival, research from The Co-operative Bank has revealed that 64% in marketing and advertising believe their sales and orders will rise next year.

The findings also show that 46% anticipate growth in international business, whilst more than a third (36%) expect to invest in their business, for example through new equipment or improvements to premises. Some 31% expect to take on more staff.

Keith Alderson, Managing Director of Corporate and Business Banking at The Co-operative Bank, said: “SMEs and entrepreneurs are widely acknowledged as vital to Britain’s economic recovery so these results are good news as we head in to 2013.

“It seems many SMEs in the marketing and advertising sector are looking forward with a cautious sense of optimism about the challenges for their businesses [in 2013].

“We see this entrepreneurial spirit day-in, day-out in our dealings with customers and I’m not surprised that SMEs are adapting and exploring new markets to overcome the economic challenges.”

Asked about the challenges facing their business in 2013, almost one in three (33%) surprisingly said they did not view the current economic climate as their main concern.

Uncertainty in the economy was still, however, by far and away the biggest challenge with 67% saying it was a major challenge. Cashflow is regarded as the next main issue cited by 34%, followed by general cutbacks (17%).

The study also found that just 12% felt sales and orders would fall in 2013 although 24% said they had suffered a decline in 2012.