Report: Marketing Spend Increases Despite Omicron

According to the latest Institute of Practitioners in Advertising (IPA) Bellwether report, spending on marketing and advertising in the UK has slowed during the spread of the OMICON COVID-19 variant, but marketing budgets are still going. The report, which accounts for the fourth quarter of last year, showed that advertising spending growth was at 5.2 per cent, which is down from 6.2 per cent in Q3 of 2021, according to the Press Gazette. Various factors, including the emergence of Omicron, supply chain disruptions, and an increase in inflation, were cited by the report as key factors that have impacted budget growth and business sentiment.

However, despite these issues, a reported 6.1 per cent of businesses claimed to have increased their total marketing budgets. Almost half (45.7 per cent) of respondents told the IPA that they expected to increase spending on marketing in 2022, while only 11.2 per cent said they expected there would be cuts. The IPA Bellwether report is researched and published by IHS Markit on behalf of the IPA and is based on data from around 300 UK marketing professionals.

Paul Bainsfair, the director-general at the IPA, said it was ‘very welcome news’ that marketing budgets in the UK continue to be increased, but the emergence of Omicron has heightened uncertainty, changed consumer behaviour, and ultimately impacted UK businesses’ marketing budget decision making. “Going forward, new variants – alongside supply chain issues and heightened inflation – may indeed induce further wobbles. The key for businesses to weather these fluctuations will be, where possible, to invest in the longer-term and in brand-building media,” he said.

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