Events are back – and they’re back in a big way. According to the IPA’s latest Bellwether Report, the sector is now growing faster than any other within the industry, signalling what is hoped to be a permanent end to Covid’s icy grip on event marketing budgets.
Having now registered a consecutive run of growth stretching all the way back to the second quarter of 2021, UK marketing budgets have seen almost three years of concerted growth, with direct marketing, main media, PR and sales promotions also thriving across the first quarter of 2024.
Although the rate at which marketing budgets are growing may have slowed, the industry as a whole finds itself in a much more comfortable position than a year ago, aided in no small part by the progressive easing of the cost-of-living crisis.
The UK economy is far from out of the woods yet though, with the current recession set to put a dampener on overall adspend throughout 2024. Despite this, the IPA forecasts a promising return to growth from 2025 which will carry on into 2026.
End of the Covid marketing malaise?
Although the slight contraction in recent budgets might concern some, it should be noted that this is down on the near-decade peak figures experienced last quarter, with the industry overall in a much healthier place than it was a year ago.
This is clearly reflected in the record growth figures registered by events budgets, which are now growing at a staggering 23.1% year-on-year – crystalising the industry’s long-awaited return to normality in the wake of the Covid pandemic.
Despite being in the midst of what most predict to be a short recession, UK marketing budgets are still being revised upwards. Over 40% of the Bellwether’s panel have raised the total amount available for marketing, compared to just 18% who reported cuts.
Although some economic headwinds still need to be buffeted, this overall trend towards optimism is almost certainly set to see the sector remain confident throughout what is set to a challenging year – but one that is markedly easier than its predecessors.
“It is so encouraging to see the upward trend in both marketing budgets and physical spend on events. Live events were some of the slowest to recover post-pandemic, so their rising prominence is a positive sign,” says Reputation EMEA head of marketing, Camille Flores-Kilfoyle.
“This trend underscores growing confidence across UK businesses as they navigate challenges like rising costs, inflation, and variable consumer confidence. By intently listening to customers, companies can boost loyalty and gather essential insights, which helps in fine-tuning marketing strategies and event spending,” she continues.
“Ultimately, combining proactive efforts with a customer-centric focus will prove to be a winning formula, driving not just resilience but also growth. It demonstrates that clever marketing is not just an expense but a wise investment for continued growth.”
Short-term strategies for long-term growth
Retaining its traditional importance in the marketing pantheon, direct marketing continued to grow alongside sales promotions – the third fastest growing sector.
Whilst any growth is of course good, this particular success is a strong indicator of the current market, with many brands relying on sales promotions for short-term gains to boost revenue.
Unsurprisingly, this isn’t amazing for long-term stability, as T&Pm chief investment officer, John Maloney explains: “Sales promotion growth combined with a decline in main media is rarely a winning formula for long-term brand growth, but it is symptomatic of the wait-and-see state of the UK economy we have all been living in.
“But along with spring, there is optimism in the air. While consumer confidence is still lower than we’d all like, some of the pressures are looking to ease, and when that happens so does the appeal of upping marketing spend and reaching more of the total addressable market”.
Although sales promotions are sometimes an indication of uncertainty, offering brands a quick buck in a time of need – they can also be used to generate long-term relationships with customers, and in turn help brands create a thriving consumer base.
“It’s important to remember that sales promotions aren’t just about short-term gains,” says Blackhawk Network VP of commerce, Anna Uprichard.
“When executed creatively, they can build lasting customer loyalty and drive new customer acquisition. In this competitive market, engaging promotions can be the difference between thriving and merely surviving,” she adds.
“It’s crucial that businesses don’t miss out on this golden opportunity to connect with savvy shoppers by developing highly compelling sales incentives and implementing targeted direct marketing campaigns. This strategic approach is the key to unlocking sales growth and creating long-term customer relationships.”
But what does this all mean for the state of the UK’s marketing industry? Good things, across the board.
While we’re clearly not out of the woods yet – with economic growth set to be tepid over the next couple of years – the green shoots of recovery are well and truly there for all to see.
And with the roaring return of events at least, it would seem that marketing has finally put its Covid demons to rest.
