British firms increase marketing budgets despite uncertainties on Brexit

British companies raised their marketing funds during the second quarter despite ambiguities about the economy as the UK seeks to leave the European Union, a study revealed on Wednesday.

The IPA Bellwether release explained that over 28 percent of its poll panel recorded an upward change to their 2017/2018 marketing budgets during the second quarter, in comparison with about 15 percent that marked a decline.

The poll carried out by IHS Markit on behalf of the Institute of Practitioners in Advertising announced on balance a net 13.1 percent of UK firms showed they would raise their 2017/2018 marketing resources in the second quarter, greater than the 11.8 percent in the first four months.

About 300 UK marketing experts, principally from Britain’s top 1,000 corporations and over all key business areas, were polled for the study.

An increase in ad spending is anticipated to be a minimal 0.6 percent in 2017 and is seen to stagnate in 2018, beaten by “underwhelming” performance in business investment and softness in consumer trust, the study revealed.

British inflation suddenly stalled last June for the first time after October, although Bank of England Governor Mark Carney announced on Tuesday that the “big picture” for inflation stayed the same.

“The election result has thrown further uncertainty into an already volatile environment. It is inevitable that this has had a knock-on effect on UK plc,” IPA’s director general Paul Bainsfair said.

The heightened marketing spend was widely focused in the digital space during the months of April to June, with the newest survey revealing that internet budgets were increased to the greatest extent in just under ten years, according to the release.