The increase in marketing spend this year is obviously welcome news, but don’t crack out the champagne just yet, says Kerry Glazer, chief executive of the AAR.

The marketing sector received some welcome news last week, with a survey by the IPA finding that marketers increased their advertising, sponsorship, public relations and other promotional budgets for the sixth quarter in a row. These findings are in line with an independent study we recently commissioned, which found that senior clients and agency leaders predict that the volume of marketing output with which they are involved will increase during 2014 and beyond. Marketers also anticipate that they will need to add additional capability to their agency roster, which is good news for agencies. This may seem like cause for celebration, but before you crack open the champagne, it’s time for a reality check. The post-recession recovery, while welcomed by all, brings new challenges for marketers to navigate in order to capitalise on the loosening of marketing purse strings, and whilst we are indeed seeing pockets of confidence, this is by no means a UK-wide scenario. We have definitely seen a quiet optimism returning to the market in recent months but I wouldn’t go so far as to say that this has blossomed into full confidence just yet.

Budgets are still trailing behind where they were pre-downturn, with an emphasis on early return on investment for any activity undertaken. A bit like Premiership football managers, the window of opportunity during which results need to be delivered is short before caution takes over. Competition on all fronts is fiercer than ever and poses a significant threat to marketers and agencies alike. For agencies it’s imperative that they are on top form when it comes to new business, selecting the right opportunities to pitch for where they can truly play to their strengths. A one-size-fits-all approach just won’t cut it anymore. Clients also have the extra burden of deciding whether or not to use a retainer or project model, move activity in-house or consolidate their agencies.

Source: www.marketingmagazine.co.uk