Cautious Optimism and Careful Strategy: IPA Bellwether Q4 2022
IPA’s quarterly Bellwether Report has once again taken the temperature of the ad industry. Up against difficult economic headwinds, Q4 2022’s results show an upbeat, yet understandably cautious attitude, as we begin 2023.
The report shows another quarter of marketing budget growth in Q4, with 20% of respondents upping the total marketing spend. This was the seventh successive quarter reporting positive growth, the longest sequence of consecutive growth for four years.
Paul Bainsfair, IPA Director General sees the results as encouraging: “It is particularly good to see positive revisions to main media budgets this quarter which is helping to drive the overall upward figure, fuelled particularly by investment in video advertising. As our evidence shows, this will stand brands in good stead during a downturn as brand-building advertising has a proven ability to maintain a brand’s pricing power and protect its profit margins.”
The sector breakdown saw the highest upward budget revision to be in events and main media advertising. These sectors also led the way when looking at 2023/2024 budgets, with events spending plans up 18% and main media advertising spending plans up 13.4%.
The results seem generally positive for an industry that has suffered from its fair share of doom-mongering over the last few months. We asked a panel of experts their thoughts on the report, and what they’ve taken away from it as they look to 2023.