Ad and marketing spending: According to the IPA Bellwether report, 12.3% of companies registered an increase in budgets for the third quarter (Photo: Reuters)
British company advertising and marketing spending grew at its fastest pace in 13 years after being boosted by firms' optimism over the UK economic recovery.
According to the IPA Bellwether report, 12.3% of companies registered an increase in budgets for the third quarter, compared with 7.3% in the second quarter.
The rise in budget allocation marks the largest upward-revision of spending since the survey, which draws data from 300 companies, began at the start of 2000.
"This latest report indicates companies are beginning to move forward, away from recession and that the UK economy is on the rise again," said IPA Director General Paul Bainsfair.
"This optimism will send a continued upbeat message to the advertising industry and wider economy."
A Sea Change in Advertising
According to the National Institute of Economic and Social Research, Britain's economy grew by 0.8%.
Meanwhile, one of the world's largest advertising agencies, WPP raised its 2013 outlook, after clocking a rise in revenues.
The IPA report also revealed a sea change in how companies are allocating advertising budgets.
British companies siphoned off more of their marketing spend to the internet than ever before after 11.7% chose to boost their coverage online.
Meanwhile, main media advertising also saw a second consecutive rise in growth.
But budgets for public relations, events and direct marketing all saw net reductions.
The IPA bellwether report may signal a brighter outlook for the rest of 2013 after research by Nielsen said UK advertising spending fell for the first half of 2013.
The information company's quarterly Global AdView Pulse report, which measured advertising spending for TV, newspapers, magazines, radio, outdoor, cinema and Internet display advertising, revealed that UK advertising spend decreased by 2.3 % between January and June 2013 compared to the same period in 2012.
But elsewhere spending continued to recover after slumping during the economic downturn, with quarterly growth of 3.9% in the Middle East and Africa, 2.7% in North America and a more substantial 6.4% in Asia Pacific.
The research also found that marketers continued to gradually increase their global advertising spending, as expenditures grew 3.5% in the second quarter of 2013 and 2.8% on a year-over-year basis for the January-June periods of 2013 and 2012.
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