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Industry reaction to Q4 2022 IPA Bellwether report

22 January 2021

The IPA Bellwether Report Q4 2022 showed buoyant reactions among companies which are expanding their marketing budgets even as clouds loom over the economy.

So we’ve gathered extensive comment, reaction and insight to the latest survey from leaders across the media, advertising, marketing, adtech and creative content sectors…

James Leaver, CEO, multilocal

“Brands that want to achieve long term success will continue investing regardless of the economic conditions.

“It should go without saying that it’s important to be smart about how you spend hard won budgets in order to find the right audiences.  

“Fortunately, new technologies make finding the right audiences at scale, with optimal efficiency, easier and more affordable than ever.

“Marketing is being used both ‘defensively and offensively’, the report suggests. It paints a heartening picture of an industry which understands the power of advertising when it comes to protecting market share and counteracting challenging economic conditions.”

Elliott Millard, Head of Planning, Wavemaker UK

“There is an apparent tension in the Bellwether data – respondents are simultaneously pessimistic about the financial situation of the UK and their own businesses whilst optimistic about their ability to invest in marketing.

“In a market where the cost of living is biting, and many media channels are inflationary (this is as much about social as it is about TV), that feels like a disconnect.

“However, digging into the areas of forecast investment allows us to reconcile this tension.

“The industry is so often focused on topline growth that we forget the power of marketing to impact price sensitivity.

“When consumer spending is squeezed, at the same time as supply chain constraints and increasing cost of production, it is arguably more important to defend price premium for profit than topline growth.

“This is reflected in the mediums that are seeing the most growth. Events, for example, help to drive trial and maintain a premium proposition.

“Broadcast media, especially video, can create a shared belief in a brand’s power, making downtrading or private label alternatives less appealing.

“In this way, that apparent tension is actually a pragmatic and strategic approach to maintaining overall profitability in tough times...

To read the remainder of this article please visit the Mediashotz website.

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