What does the New Year hold?

According to the IPA's latest Bellwether Report, researched and published by Markit Economics yesterday, UK adspend grew at an annual rate of 6.6% in 2010, in stark contrast to the forecast reduction of -1.1% one year earlier.

Initial budgets for 2011 are also set higher than 2010 actual spend. Main media budgets are set to fair relatively well, while budgets have also been set higher for direct marketing. In contrast, companies plan to reduce their sales promotion and 'all other' marketing spend in 2011. Growth of spend in internet advertising appears to be slowing.

Despite this relatively heartening news, companies are more pessimistic about the financial outlook for their businesses overall. Those considering prospects to have improved fell from 28% to 25%.