Market research budgets are expected to decline further in 2019 according to the quarterly Bellwether report commissioned by the Institute of Practitioners in Advertising (IPA). The survey is based on data gathered from roughly 300 marketing professionals based in the UK.
Katie McQuater explains in greater degree why market research budgets are in decline in this article in ResearchLive:
According to the quarterly IPA survey, a net balance of -4.7% of marketing executives indicated they planned to spend less on market research in the fourth quarter of 2018 (decreasing from -3.7% in Q3 ). This continues the downward trajectory for research budgets, which have been declining since the third quarter of 2015. Moreover, -7.9% of panellists expect budget cuts in market research in 2019/2020.
Overall marketing budgets have not fared much better, stalling in the fourth quarter and ending six years of budget growth as economic uncertainty surrounding Brexit continues. A net balance of +0.0% marketers said there had been no change to their budgets in Q4, and while 16% reported growth, this was offset by others who had seen their spending cut (-16%).
Marketers remained cautious in their outlook for 2019/2020, with 27% expecting an increase in spend and 26% anticipating cuts, resulting in a net balance of +0.8%. Panellists were slightly pessimistic in their assessment of their own financial outlook, with a net balance of -0.9% (down from +5.7% in Q3 and +13.3% in Q2 2018 ) when asked if they felt more or less optimistic about the financial prospects for their company than three months ago.
Meanwhile, the outlook for the industry’s prospects as a whole remained firmly in negative territory, falling to -28.6% in Q4, down from -21.0% in the previous quarter.
