Sales And Promotions Sector Booms

Companies are spending one third of their overall marketing budget on sales and promotions initiatives, according to a study carried out by ISBA and the Audience Research Consortium (ARC).

The report, which surveyed some of the UK’s major advertisers, shows that sales and promotions (SP) expenditure is growing, with 50% of companies planning to increase their SP budgets over the coming year and only 6% planning decreases.

The findings also show that a high proportion of companies’ SP budgets are spent in-house. Respondents reported that 56% of their overall SP budget is spent in this way, with only one-third of those surveyed not retaining an SP agency.

Coupons and money-off incentives were found to be the most popular SP “mechanisms” and one third of UK companies said they use the internet to drive their consuner SP activities. Advertisers spending more than £1m per annum led the way in this field, together with those in the tourism and leisure industries.

Author of the report, Jonathan Lace, said: “The results of the study show that there is cause for optimism. Uppermost is the continuing growth in use of sales and promotion in the UK. Second is the generally good level of overall client satisfaction with their agencies responsible for SP. Within the industry there is also an opportunity for grater partnership, more strategic input and greater transparency.”

ISBA: 020 7499 7502 www.isba.org.uk

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