Marketing Budget Growth
Surge in UK marketing sector spend
The Q2 2024 Bellwether Report, conducted for the Institute of Practitioners in Advertising (IPA), signals a remarkable surge in the UK's marketing sector.
This significant growth and sustained optimism bear important implications for hiring decisions and the availability of marketing talent for those companies hoping to grow and take advantage of any upturn in economic conditions. We delve into the key highlights and their potential impact on the job market.
Marketing Budget Growth
The report reveals marketing budgets have experienced the strongest upward revision since Q1 2014. This sustained growth, positive for 13 consecutive quarters, underscores robust market confidence and a likely increase in demand for marketing professionals.
Key Areas of Growth
Events Marketing
Despite a slight dip from +23.1% to +17.2%, events marketing continues to lead, indicating a need for talent skilled in organising and managing large-scale events.
Main Media Budgets
With a net balance of +3.5%, driven by online and video advertising, there is a rising demand for digital marketing experts.
Direct Marketing
Budgets in this area increased for the sixth consecutive quarter (+8.9%)
Sales Promotions and Market Research
Sales Promotions and Market Research: Upward revisions in these categories (+6.9% and +3.2% respectively)
Business Confidence
Company financial prospects are the most optimistic in nearly three years, with a net balance of +13.6%. Although industry-wide financial prospects remain slightly negative (-4.1%), this is the least negative sentiment since Q1 2022.
During this period of negative sentiment, the UK job market had also been in decline with month on month falls in demand since July 2022. The improvement in business sentiment within the marketing sector is likely to have a subsequent positive effect within the job market.
Economic Conditions
The UK's improving economy, with a GDP growth forecast of 0.6% for 2024, and falling inflation, alongside predicted drops in interest rates, all contribute to the overall positive sentiment. However, political and global geopolitical events could temper this optimism.
Initial indications are that the UK has become more attractive for investment due to political and economic stability post-election. There has also been a small increase in consumer confidence.
These indicators point to why marketing teams are beefing up their budgets.
However, there are still threats to sustained growth. The UK has high levels of employment within the professional sector including marketing. Any surge in demand for skills will likely put upward pressure on salaries and lead to possible retention problems within existing teams. To support long term growth strategies, we would recommend maintaining a close eye on marketing salaries, insuring a competitive rate and to understand the level of demand for skills within the industry.
Marketing job forecasts
While advertising expenditure is expected to remain relatively flat in 2024, projected growth in subsequent years (1.2% in 2025, 1.7% in 2026, and 1.9% in 2027) signals a steady long-term increase in marketing spend and subsequent demand for marketing talent.
Strategic Implications for Hiring
With marketing spend predicted to grow year on year for the next 3 years, it is possible to predict that demand for skills will also increase.
Given these projections, we would recommend developing long-term recruitment strategies to align with the anticipated growth in marketing and advertising spend. Additionally investing in existing teams especially around new technology adoption such as artificial intelligence and analytics tools.
“Although an increase in hiring in the marketing sector is not yet apparent, this report indicates that it is on its way, and organisations should start to look at their recruitment strategy and growth plans now, so that when the time comes they willl be one step ahead of the competition.”
John Lynes, Director Ashdown Group
Conclusion
The Q2 2024 Bellwether marketing budget report indicates a vibrant and expanding UK marketing sector, fostering an environment ripe for talent acquisition and career development. HR professionals and hiring managers must capitalise on this growth by implementing strategic recruitment and retention plans, ensuring their organisations are well-equipped to thrive as the economy improves.
Ashdown build strong working relationships with the marketing recruitment teams and business stakeholders we partner with. Combining the latest recruitment technology with an innovative approach, we deliver support, advice and marketing insights to ensure a successful marketing recruitment campaign.
Our 2024 Marketing Salary Guide focuses on major roles in the marketing sector, created from data analysed from over 3,400 organisations, 21,000 registered jobs, 350,000 recently active candidates, ONS data and other external data sources. Explore industry specific salary data and salaries for individual job roles, based on experience and location.
Join other industry thought leaders in our round table events. Sign up to benefit from this exclusive network.
Openminds
Looking to hire Marketing talent?
Our specialist Marketing recruitment team can help connect you with the best digital, technical and creative talent for your role. We have a large network of marketing candidates, with instant access to some of the best marketing talent in the UK.
Using the latest technologies to enable a rapid search, selection and placement process. Our team conduct a hands-on screening, interview and recruitment process to ensure a rapid solution to your hiring plans.
Free bespoke salary report
Receive a fully researched report for your industry, role and location