It has been more than a year since ‘Brexit’ took place. A lot of predictions were made prior to the event taking place however its impact on marketing budgets is nonetheless same.
In a market analysis survey, around 70% of companies were found with the same marketing budgets levels as they were three months ago in response to political and economic uncertainty.
Having said that, the Q3 survey report released a net balance of +13.4% of firms recording a rise in their budgets. It is namely the fourth year of successive positive revisions.
The report also signaled a continuous fall in the performance when compared to overall marketing budgets. This is due to its ninth successive quarterly drop in market research spend.
The industry analysis report holds original data produced from a board of 300 marketing experts.
The impact of Brexit negotiations and the UK’s future withdrawal from the EU as reasons for their uncertainty, incorporated with data of reduced investment and clients’ wish to retain the cost low.
Earlier in the year, market research showed a net balance of -2.9% of companies in the survey predicted a reduction in market research budgets during the 2017/18 financial year as a whole.
We’ll see a few more factors that revealed key insights:
- 24% of marketers were less confident about the financial prospects (Compared to 3 months ago)
- 29% of the marketers had more confidence about the financial prospects. of their companies.
- Around 12% observed a descending revision to market research budgets,
- Approximately 10% noted growth for the same.
- The net balance of -2.4% made market research the only category to record a net reduction in spending during Q3.
Director general at the IPA was surprised to see the extent to which marketing budgets are held captive in the wider economic and political uncertainty. He perceived this vast majority as their state of paralysis, after seeing 70% of UK marketers’ unrevised budgets.
Public Relations budgets were reduced moderately in Q3. Although there has been an ebb and flow situation underway for past two years of the survey. It is following modest growth in the previous quarter. Having seen growing importance in personalized marketing, it has reflected in the budgets as well.
The main media advertising has witnessed a decline in the net balance which is happening for the first time since 2013. It may seem that Brexit is the cause of the declined budget however it was already undergoing a slowdown long before the announcement of the ballot. Owing to the fact, the UK media market has softened near the end of this year.
As we have seen social media and smart technology offer us a blend of the physical and digital events, we experience a progressively remarkable shift in a proposition from brand marketers budget and the trend is continuing.
Embracing the Brexit situation, understanding the managing finance for marketing is now key to providing the best partnership assistance to clients. The global market research suggests unfolding ideas that have short-term commitment and outcome but shell out strategies and directions for a longer term.