Marketing budgets cut for first time in seven years as brand building takes a hit

UK companies cut their marketing budgets during the third quarter, the first time there has been a decrease in seven years, amid heightened political and economic uncertainty.

The IPA’s quarterly Bellwether report shows a net balance of 0.5% of marketers questioned revised their marketing budget down in the third quarter. Nearly two-thirds (64.1%) reported no change in budget, reflecting a ‘wait-and-see’ approach adopted by many in the face of uncertainty about Brexit and its impact on business.

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Marketing budgets make surprise return to growth

UK companies revised their marketing budgets up markedly in the first quarter of 2019, a stark contrast to the final quarter of 2018 when spend stagnated, as they made efforts to protect their brands amid ongoing economic uncertainty.

According to the quarterly IPA Bellwether, a net balance of 8.7% of marketing executives reported increasing their budgets, up from 0% in the final three months of 2018 and the highest level since Q3 2017. More than a fifth (21.6%) reported spending growth, while 12.8% said budgets had been cut.

The internet was once again the best performing category, with the net balance of those increasing spend jumping to 17.2%, up from 2.1% in the prior quarter. In particular, search/SEO saw a swing from cuts of -3.9% in Q4 2018 to growth of 14.2% last quarter.

There was also a renewed drive for big-ticket ad campaigns with a net balance of 5.2% of marketers increasing spend, a turnaround from the 6.2% decline in the prior quarter. Events also saw expenditure growth of 3.4%.

However, sales promotions, market research and direct marketing budgets all took a hit, while PR spend was reported as flat.

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Marketing budget growth stalls as CMO’s fail to prove ROI

educatie

Growth in marketing budgets has stalled in 2017, with spend hitting a plateau this year after three years of growth.

According to a survey of 353 marketing executives in the US and UK at companies with more than $250m in annual revenue, budgets fell from 12.1% of company revenue in 2016 to 11.3% in 2017 – a return to 2015 levels.

And CMO’s are not confident growth will return next year. Just 15% say they expect a significant increase in 2018, while a third expect budgets to be be cut or frozen.

The research comes amid an increasing focus on marketing and effectiveness…

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CMOs face hard choices in 2018

Marketing budgets are falling as a proportion of company revenue, according to a new study which suggests CMOs will be faced with some hard choices in 2018 as a result.

The 2017-2018 CMO Spend Survey, published by research business Gartner, was based on responses from 353 marketing executives in North America and the UK at companies with more than $250m in annual revenue.

This found that marketing budgets hit a plateau in 2017 after three years of growth, with budgets falling from 12.1% of company revenue in 2016 to 11.3% in 2017 – a return to 2015 levels.

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Avoid These Four Marketing Budget-Planning Mistakes This Season

It’s early November. The air is crisp, leaves are falling, and sweater weather is back. For B2B marketers, that can only mean one thing: planning season.

Are you still there? Those two words are often enough to make marketers scatter like leaves in the winter wind. I’ve been doing this for a long time, and I haven’t found one marketing leader who loves planning. (If you’re out there, let me know.)

But despite the annoyance, marketing budget planning is an absolute necessity. Without it, you can’t proceed or succeed. And unlike your taxes, you can’t file an extension.

For planning 2018, here are the top 4 mistakes almost all marketers tend to make, along with ways to correct them.

1. Spending too much time and energy trying to ascend Mt. Data Sourcing

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CFOs back marketing as 31% say they will raise budgets over the next year

A new global study has suggested chief financial officers are planning on giving their backing to marketing.

According to a report by American Express and Institutional Investor, which surveyed 100 of the most senior finance executives at major brands, 31% plan to increase their investment in advertising, marketing and PR over the next 12 months, with 57% planning to maintain previous levels of investment.

In fact, only 12% of the CFOs questioned – of which more than half work for companies that generate over $1bn in annual turnover – said they planned to cut their investment in marketing.

However, despite seemingly giving marketing their financial backing, there’s a realisation among CFOs that marketers are becoming harder to maintain.  An overwhelming 97% of those questioned answered yes, when asked if they were currently experiencing difficulties with hiring or retaining marketing staff.

Bron en volledig bericht: MarketingWeek