Big, bulging budgets: UK brands spending more in 2014

Big brands in the UK are putting aside more cash for marketing budgets alongside improving financial forecasts.

The latest Bellwether report, a quarterly survey of 300 senior marketers from the UK’s top companies found that marketers were increasingly optimistic about the prospects for their companies and industry sectors.

The growing market optimism is mirrored in the swelling budgets, with 40% of those surveyed indicating that budgets were on the rise – compared to 25.8% last year.

Almost a third spent more than planned in the first quarter compared to 9% spending less than budgeted, according to the study.

Chris Williamson, chief economist at economic analyst Markit and author of the Bellwether report says: “The spring Bellwether Report reveals the most upbeat assessment of business and marketing spend that we have seen since starting the survey back in 2000. Last year saw the biggest rise in marketing spend since 2006, and 2014 looks set to be even better.

“If the initial increase in budgets for the year being the strongest since 2006 wasn’t already enough, the fact that companies have already revised these budgets higher to an extent not seen in the 14-year history paints a remarkably buoyant picture for the rest of 2014.

“Companies are ramping up their markets and advertising expenditure in the face of growing optimism about the economic outlook. As higher marketing spend is also usually accompanied by rising business investment.”