The Bellwether report has revealed that marketing budgets were revised markedly higher in this past quarter – the strongest growth in these budgets for a year.
The events sector, alongside internet and main media advertising, was one of the main beneficiaries of this rise. Event marketing budgets have now risen for 11 consecutive quarters with the implied rate of increase accelerating sharply to a series record high of +13.4%. This is a steep increase on quarter one's +6.3%.
PR also saw an upward revision of +2.3%.
However, it should be noted that this survey was conducted before the UK voted to leave the EU. In advance of the vote, some marketers revealed that budgets were being frozen for a three-month period.
Following the Brexit vote, Bellwether now predicts a decline in adspend for 2016 and 2017, which could impact the UK event marketing industry.
Paul Bainsfair, IPA director general, said: "While the uncertainty in the economy caused by the vote to leave Europe continues to linger, we will experience an inevitable period of flux - as reflected in the Bellwether’s downgrading of adspend forecasts.
"Before companies react and cut marketing spend, however, it is worth remembering that all the evidence points to the opposite. Companies that keep investing during a downturn perform better financially than those that reduce marketing expenditure."
Industry reaction to follow.
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