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UK companies raise advertising budgets ahead of election

Published 16/04/2015, 00:17
© Reuters. An advertisement for HSBC is seen in the window of a bank branch in London

LONDON (Reuters) - British companies have spent more on marketing for the 10th consecutive quarter, reflecting optimism about the economy despite concerns over next month's election, according to an industry survey on Thursday.

The IPA Bellwether report said that a net balance of 11.8 percent of companies increased their advertising budgets in the first three months of 2015, nearly double the figure of 6.1 percent in the previous quarter.

The report also found that around 28 percent of companies were expecting to see an increase in marketing budgets in the current financial year, the highest reading in eight years.

"While many commentators await to see what form Britain's post-election economic landscape takes, marketing executives seem to be shrugging off any uncertainty," said Paul Smith, senior economist at Markit and author of the report.

"Growth looks highly likely to be extended into a third year. Accordingly we are predicting a strong real-term increase in UK ad spend over 2015 as a whole."

Marketing budgets were most focussed towards the internet, which posted a rise in net balance of 8.4 percent in the first quarter, while events and direct marketing also rose 5.7 and 5.5 percent respectively.

However net reductions were seen in PR, market research and other paid-for marketing activity.

© Reuters. An advertisement for HSBC is seen in the window of a bank branch in London

The IPA Bellwether report was drawn up from a survey of 300 companies based in Britain.

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