Global Marketing Spending To Grow 30% In 3Yrs

Companies are quickly realising the return on investment from their marketing campaigns, which explains why global marketing spend is expected to soar by more than 30 per cent over the next three years.

A new report from Forrester has predicted marketing investment will increase by $4.75 trillion (£3.44 trillion) by 2025, Marketing Week revealed.

In fact, there had been an increase on advertising spend of 13 per cent between 2020 and 2021, despite the financial impact of the pandemic.

With regards to the UK, it is estimated more than $158 million was spent on marketing last year, which is the seventh highest amount in the world.

Consequently, its marketing investment growth rate before 2025 is expected to be 2.7 per cent, with the UK anticipated to drive two per cent of the global investment growth.

According to the report, IT software and services will increase their marketing budget the most over the next few years, contributing up to 14 per cent of the total amount.

This will be followed by multiline and speciality retail, raising it by nine per cent, while consumer durables and apparel will come in third place, increasing its marketing allowance by eight per cent before 2025.

Pharmaceuticals, biomechanics, and fast-moving consumer goods will retain the highest proportion of UK marketing investment at more than a third (37 per cent).

This comes after the Institute of Practitioners in Advertising (IPA) recently published its Bellweather report, which showed marketing spending growth was 5.2 per cent during the fourth quarter of 2021.

Despite this being a slight decline from 6.2 per cent for the previous quarter, nearly half of respondents said they would increase their advertising budget in 2022.

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