Confidence appears to be growing in British commercial property businesses with a majority of commercial property companies planning to increase their marketing budgets this year, according to an annual forward-looking survey of British commercial property businesses.
The annual Mind Metre Marketing Barometer, which canvasses more than 2,000 large and small British commercial property companies, found that a net proportion of 38.5 per cent of firms are predicting a marketing budget increase in 2012. Last year the 2011 survey revealed no net increase in commercial property companies raising spend.
The Barometer indicates a marked surge in buoyancy amongst British commercial property businesses, a significant majority of which expect marketing investment this year will be money well spent, the findings reveal.
The research, conducted across an extensive cross-section of British commercial property firms, showing a seasonal split, with projected growths in marketing spend focused at the beginning and end of the year. While the study did expose varying trends across Britain, commercial property firms in all regions display a more positive outlook at the start of 2012 compared to the same time last year. This is the first year the Marketing Barometer data has been released to the media.
The findings which show that larger commercial property companies demonstrate a bigger inclination to invest more in marketing than commercial property SMEs can possibly be attributed to the fact that bigger commercial property firms can more easily tap into cash flow and bank credit at a time when net business lending has dropped and smaller commercial property businesses continue to experience tight credit conditions.
When it comes to the largest commercial property companies, 61 per cent plan to increase marketing spend while just 15 per cent aim to reduce their budgets. Nonetheless, the strength of the SME outlook can still be characterised as resilient, as 56 per cent of commercial property SMEs plan to raise their marketing budgets whereas only 20 per cent plan to cut their spending.
MindMetre’s Managing Director, Paul Lindsell, commented: “These forward-looking survey results augur well for 2012, which, if marketing budget trends are taken as a forward indicator of overall business sentiment, may herald the beginnings of a true upturn for Britain Ltd.”
He further added: “Unlike other studies, which only track the activities of Britain’s very largest businesses, this study embraces representation from the full range of company sizes.”
Commenting on the Mind Metre Marketing Barometer, Marketing Director at the Institute of Direct and Digital Marketing, Lisa Turner, said: “It’s encouraging when trends which are apparent through our own experience and through anecdotal evidence are backed up by solid research. These are exciting times for marketers. Difficult economic conditions taught us to be agile, flexible, adopt new techniques and to make every marketing penny count. Now that confidence appears to have returned, it’s that ability to embrace change and to prove marketing’s worth that will bring the greatest rewards going forward.”
Lindsell further added: “2011 may have seemed a year of economic despondency, but it was also a year where weak players went to the wall, and strong businesses survived, even making highly advantageous acquisitions. Although some sectors may still be suffering from low demand and over-supply, many more may have passed through their bloodletting stage and appear to be gearing up for growth, both at home and in buoyant overseas markets. MindMetre’s findings provide reasons to be cautiously optimistic as businesses attempt to beat off the threat of another recession and claw their way back to prosperity.”
