TheMarketingblog

UK Marketers Set to Boost Budgets Despite Economic Challenges

Nielsen, a global leader in audience measurement, data, and analytics, has released its sixth global Annual Marketing Report, providing crucial insights into the priorities and strategies of marketers for 2024 and beyond. The report, based on a survey of nearly 2,000 global marketers, highlights a strong preference for digital channels but warns of potential revenue losses without a comprehensive cross-media approach.

Optimism Amidst Uncertainty

Despite ongoing concerns over inflation, consumer spending, and supply chain disruptions, a significant 72% of global marketers expect to increase their advertising budgets in 2024. This is a notable rise from the 64% who expressed similar optimism last year, signalling a robust confidence in marketing investments despite economic headwinds.

Performance Marketing vs. Brand Building

The report raises an important caution: while marketers are prioritising performance marketing tactics—favoured by 70% of respondents—this could undermine long-term ROI and lead to brand erosion. Marketers’ primary KPIs remain long-term and full-funnel ROI, yet the current strategy leans heavily towards immediate performance outcomes at the expense of sustained brand development.

Digital Media Dominates

Digital channels continue to gain ground, with marketers planning to allocate over 63% of their media budgets to digital platforms. This marks a significant shift from last year’s equal split between traditional and digital media. Social media, search, online video, and digital display are expected to see the largest budget increases.

Measurement Confidence vs. Reality

Interestingly, while 84% of marketers express high confidence in their ROI measurement capabilities—a jump from 69% in 2023—only 38% actually evaluate ROI comprehensively across both traditional and digital media. This gap suggests that many marketers might be overestimating their ability to measure integrated marketing efforts effectively.

The Need for a Cross-Media Strategy

Tina Wilson, EVP and Group GM of Nielsen’s Analytics Portfolio, underscored the report’s findings, stating, “Marketers manage a diverse and growing number of channels, each with unique activation needs and performance metrics. Nielsen’s Analytics Portfolio meets marketers where they are—across channels and objectives—to accurately measure and maximise returns across a complete marketing plan. Our research reaffirms that effective measurement requires an integrated effort across media to understand brand and performance metrics in both the short and long term.”

Comprehensive Industry Insights

This sixth edition of Nielsen’s Annual Marketing Report is built on survey responses from December 2023, involving marketers managing budgets of £800,000 or more. These professionals come from a range of industries including automotive, financial services, FMCG, technology, healthcare, pharmaceuticals, travel, tourism, and retail, focusing on media, technology, and measurement strategies.

For UK marketers looking to navigate the complex landscape of 2024, Nielsen’s report offers valuable guidance on balancing immediate performance goals with long-term brand health. Download the full report here for detailed insights and strategic recommendations.