Marketers remain cautious
Marketers are feeling less confident about the financial prospects of their industries than at the start of the year, according to the Institute of Practitioners in Advertising’s (IPA) Bellwether Confidence Index, which is exclusive to Marketing Week.
Marketers are cautious about the financial prospects of their companies with 31% saying that things have improved since the first quarter but 27% reporting that things have got worse. The difference between the optimists and pessimists is at its lowest level since the second quarter of 2005.
The pessimism increases when marketers look at the prospects of their own industries, with just 16% reporting that the overall financial prospects have improved but 33% of marketers say the situation has deteriorated. The difference between marketers who feel things are improving and those who do not has declined significantly since the previous quarter.
The subdued attitudes of the second quarter are expected to continue for the rest of year. The mood reflects the report, which shows cuts in marketing budgets for the fifth quarter running.
But there are hints that the decline in ad spend is slowing and responses to the Marketing Week questions show expectations of a limited increase in marketing and advertising spend over the year as a whole.
The Q2 Bellwether report, conducted by NTC Economics, asked the panel an additional question about the prospects of their own company and industry. The panel consists of 250 UK marketers, structured according to contribution to GDP.