‘Majority government a boost for marketing’ says Bellwether Report author Paul Smith

Marketers’ confidence is sure to rise at the prospect of a ‘stable’ majority government, according to IPA Bellwether Report author Paul Smith, as this morning’s polls show an imminent Tory majority.

The pound jumped against the Euro at the highest rate in two years following the news of an imminent Conservative majority, with the financial industry pleased about the prospect of a stable right-wing government.

Most recent polls show the Conservative Party have so far secured 316 of the 326 seats needed to form a majority government, with Labour trailing with 228 seats. A BBC forecast suggests a Tory win with 329 seats.

The result comes after polls leading up to the election showed that Conservative and Labour were neck-in-neck, suggesting a coalition government would be the most likely outcome.

Paul Smith, senior economist at Markit and author of the IPA Bellwether Report, told Marketing Week: “Its likely to be a stable government, which is usually seen as a good measure for business confidence in general. The markets have reacted positively this morning.

“On that basis of stability there will be no uncertainty around horse trading around a coalition government, which will be positive for the marketing industry.”

Tim Lefroy, chief executive of the Advertising Association, agreed.

“Creating jobs at twice the rate of the rest of the economy, driving growth and fuelling the Creative Industries, advertising is at the heart of the Tory long term plan,” he said.

“We’re well placed to build on progress made during the Coalition and push advertising further up the economic agenda.”

The FTSE 100 Index has also jumped by 148 points or 2% to 7028 points, following this morning’s result.

The most recent Bellwether Report, released in April, showed that marketing spend grew at an accelerated pace in the first quarter of 2015, as marketing executives grew more optimistic about financial prospects.

More than a third (37.8%) of companies had grown more optimistic compared to 30.7% in Q4, and while this number was still down from 38.6% in 2014, the next report could show different results if the Tory’s take office.

“Questions remain over things like an EU referendum, which will cause uncertainty if they do go ahead with it,” Smith adds.

“It wouldn’t be particularly useful for business as we do so much trading with Europe. But in the short term, I think it will be positive for business in general.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here