IPA BELLWETHER REPORT Q3: JEREMY REACTS

The Institute of Practitioners in Advertising (IPA) has just published the report and core charts outlining the results of the Q3 2022 IPA Bellwether Report, in the midst of the cost-of-living crisis ravaging the UK’s economy. The report unveiled that total marketing budgets increased by a ‘weak positive’ net balance of +2.1%, which is the slowest pace since Q1 2021 due to the effects of the cost-of-living crisis, soaring energy bills and weakened demand and economic certainty stalling business decision-making. 

The report also stated that “high inflation has caused consumers’ purchasing power to deteriorate, weighing on demand. This has led some companies to retrench, with marketing budgets being reduced as a result.” While events remained “a key avenue of marketing growth” and saw some growth in Q3, budgets were cut in every other sphere. For example, the report revealed that TV and radio fell for the first time since Q1 2021 (net balance of -3.1%, falling from 0.0%) and published brands (net balance of -11.2%, from a previous -2.6%).

Financial prospects have also plummeted to levels seen at the beginning of the pandemic, as the UK anticipates “more challenging economic conditions”, stated the report. Comparing the data from three months ago, the research signaled a higher level of ‘negativity’ amongst Bellwether firms when it came to financial prospects of their specific industry.

The report finished on an optimistic note, though, revealing that 2022 adspend growth forecast for this year saw a slight uptick to 3.6%, due to the UK government’s energy support relief package. 

LBB asked Jeremy Hine, and other experts across the industry about their main takeaways from the report and what we should expect to see in the future.