According to a report by the the IPA (Institute of Practitioners in Advertising) UK marketing budgets increased in the third quarter of this year.
The majority of the increased advertising spend is going towards online marketing and sales promotion, as appose to more traditional media such as print advertising.
The report found that 21 per cent of companies are raising their spend on advertising, to drive their business upwards in a struggling economy.
Online advertising has been increasingly favoured by organisations. It provides instant exposure to potentially global markets, with measurable and quantifiable returns. Being significantly more targeted than other forms of advertising, it is also more cost-effective than offline and print advertising.
Better online advertising may well be what UK PLC needs to pull itself out of this struggling economy.
(Image credit - west.m)
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Online Advertising Trends in UK
So this IPA report says there will be a 21% increase in online advertising, but how much of this will be dominated by Google.
Do UK based advertising companies look to see an increase in their advertising sales.
If so which companies are from the UK who can reap the benefits from the increase in spending?
UK trends
Firstly just to be clear, the 21 per cent of companies increasing their spend is on advertising overall, not just on-line.
However, the report did highlight that one of the largest areas of growth in advertising spend over the last quarter was on-line, with a 16.6 per cent increase.
Business optimism among marketing executives has fallen to a two and a half year low, and organisations are looking for the most efficient ways to use their marketing budget.
The report found that many organisations are looking towards on-line advertising spend as a more manageable and measurable form of advertising, contrasted with a worrying reluctance to increase spend on more 'traditional' activities such as print and broadcast advertising.
Much of that spend is likely to be dominated by Google. Around 90 per cent of our clients' spend is on the Google network. however, we don't have figures on the predictions of the overall marketplace.
UK advertising companies that offer on-line marketing solutions should look to see their clients budget spend increase slightly on on-line, however I would predict client scrutiny on the campaign plans to be higher than ever. It's time for agencies to step up their game.
In my view, the UK organisations that will benefit the most from an increase in spending are those who implement best practice management on their on-line advertising. Our own research found that on average, 34p in every £1 spent on PPC advertising spend is wasted. On-line advertising has the luxurious advantage of being much more measurable to the point of sale than other forms of marketing, and we often see many organisations not using this to their benefit.
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