Some good news amidst the turmoil – the 2022 UK Adspend is forecast to reach 3.6%, so is still growing. This follows the UK government’s energy support package for households and firms, which alleviates some of the pressure caused by the cost of living crisis.
Total marketing budgets are on the rise, albeit at a slower rate compared to Q1 2022. Attending industry events were responsible for a significant chunk of revenue generation, with online advertising and video advertising even growing (registering a net balance of +9.3% and +8.7% respectively).
AdTonos CEO & Co-founder, Michal Marcinik, had this to say about the recent findings:
“As expected, the cost-of-living crisis and inflation are impacting both marketing budgets and the industry’s outlook on the future. However, it is worth noting that investing in smart communications efforts in tough times can give players a competitive edge, especially if they focus on increasing value and enhancing strategies. Companies that avoid cutting their advertising budgets throughout a recession often come out on top, boosting margins and driving revenue, and it is this kind of forethought that leaders need to keep in mind. Now, where this money goes is more important than ever, and brands need to have reliable, effective solutions.
Audio advertising is an often under-utilised solution in an advertiser’s toolbox. Not only is audio advertising proven to inspire better ad engagement and recall of up to 25% over other formats, it also provides the ROI and trackability that is so important during a time where every cent matters.”
While there is some good news, we’re not over the worst of it yet. We are dealing with the worst financial outlook since the start of the pandemic, and a number of marketing channels have taken a hit, most notably branded marketing, out-of-home, and to a lesser extent, even audio. It has, however, been proven time and time again that advertising as a whole tends to be one of the most resilient industries in times of recession. The companies that fare best in tough economic times are those that persist and take advantage of the relatively less competitive market to get their message and brand out there.
Interested in finding out more? Read the full IPA Bellwether Q3 report on the IPA website.