Annual MindMetre Marketing Barometer indicates business confidence growing as majority of companies plan to boost budgets after a timid 2011
Confidence appears to be rising in British business with a majority of firms planning to raise their marketing budgets this year, according to MindMetre Research’s latest annual forward-looking survey of British business. The annual MindMetre Marketing Barometer, which canvassed more than 2,000 large and small British companies, found that a net proportion of 38.5% of firms are predicting a marketing budget increase in 2012. Last year the 2011 survey showed no net increase in companies raising spend.
The Barometer indicates a marked surge in optimism among British businesses, a significant majority of which anticipate marketing investment this year will be money well spent, the findings demonstrate. The MindMetre Marketing Barometer shows:
• 57.1% of British companies plan to boost their marketing budget in 2012, while only 18.6% intend to cut it, with the difference between the two providing the net figure of 38.5%
• in 2011, a roughly equal proportion of respondents (just under 42%) planned to increase their marketing spend as intended to reduce it, leaving virtually no net difference
• a net proportion of 46% of Britain’s largest firms (1,000 or more employees) intend to increase marketing spend this year, compared to 36% of SMEs (under 250 employees)
• regionally, businesses in the South East display the highest levels of confidence, showing a net upward revision of 48%, while firms in the North East display the gloomiest outlook for 2012, with a net proportion of just 24% of firms planning on upping their marketing spend.
The research, conducted across a wide cross-section of British firms, shows a seasonal split, with projected increases in marketing spend concentrated at the beginning and end of the year. And while the study did reveal varying trends across Britain, firms in all regions exhibit a more positive outlook at the start of 2012 than at the same time last year. This is the first year the Marketing Barometer figures have been released to the media.
The findings which show that larger companies demonstrate a greater inclination to invest more in marketing than SMEs can possibly be attributed to the fact that bigger firms can more easily tap into cash flow and bank credit at a time when net business lending has fallen and smaller businesses continue to experience tight credit conditions. When it comes to the largest companies, 61% plan to boost marketing spend while just 15% aim to slash their budgets. Nevertheless, the strength of the SME outlook can still be characterised as buoyant, as 56% of SMEs intend to raise their marketing budgets while only 20% plan to cut their spending.
Paul Lindsell, MindMetre’s Managing Director, comments: “These forward-looking survey results augur well for 2012, which, if marketing budget trends are taken as a forward indicator of overall business sentiment, may herald the beginnings of a true upturn for Britain Ltd. Unlike other studies, which only track the activities of Britain’s very largest businesses, this study embraces representation from the full range of company sizes.”
Commenting on the MindMetre Marketing Barometer, Lisa Turner, Marketing Director at the Institute of Direct and Digital Marketing, says: "It's encouraging when trends which are apparent through our own experience and through anecdotal evidence are backed up by solid research. These are exciting times for marketers. Difficult economic conditions taught us to be agile, flexible, adopt new techniques and to make every marketing penny count. Now that confidence appears to have returned, it's that ability to embrace change and to prove marketing's worth that will bring the greatest rewards going forward."
Lindsell adds: “2011 may have seemed a year of economic despondency, but it was also a year where weak players went to the wall, and strong businesses survived, even making highly advantageous acquisitions. Although some sectors may still be suffering from low demand and over-supply, many more may have passed through their bloodletting stage and appear to be gearing up for growth, both at home and in buoyant overseas markets. MindMetre’s findings provide reasons to be cautiously optimistic as businesses attempt to beat off the threat of another recession and claw their way back to prosperity.”
To download a copy of the MindMetre Marketing Barometer 2012 Report please visit Marketing Barometer www.mindmetre.com/id74.html
For further press information, contact Eleanor Caine, Lindsell Marketing, firstname.lastname@example.org
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