Digital news to watch: UK marketing budgets have failed to grow for the first time in 14 quarters
John Readman ??♂? ????
?? AI Reporting and Forecasting for Ecommerce, B2B & Marketing - Agencies, Brands & Retailers
In this weeks digital news, UK graduates are facing record-high competition for jobs in 2024, with an average of 140 graduates applying per vacancy, a 59% increase from 2023. According to the Institute of Student Employers, this is the highest level of competition recorded in over 30 years of their annual survey. UK marketing budgets have stagnated for the first time in 14 quarters. As marketers hold back on spending ahead of the autumn budget. This marks a significant change from the average growth of 8.8% seen over the previous 13 quarters, and down from a 15.9% upward revision in Q2.
Google Ads’ new Gross Profit Optimisation feature allows advertisers to optimize campaigns based on profit margins, with early tests showing a 15% increase in profit. Advertisers must provide cart data and COGS, and set their goal to profit tROAS (POAS); the feature is available in select accounts. A UK report shows that 11% of shoppers, known as serial returners, will account for ￡6.6bn in returns this year, driven by practices like over-ordering and short-term use. Retailers, including ASOS, are introducing fees for frequent or online returns to mitigate rising costs.
Marketing budget growth stalls for first time in over three years
UK marketing budgets have failed to grow for the first time in 14 quarters. As marketers “press pause” on spending ahead of the autumn budget. The latest quarterly IPA Bellwether report reveals the number of panellists who revised their marketing budget upwards (21.6%) matched those who implemented cuts. Resulting in a net balance of 0.0%. This demonstrates a significant shift in behaviour from the growth observed over the previous 13 quarters, which had averaged a net balance of 8.8%. To compare, in Q2, 15.9% of brands revised their marketing budgets upwards.
Google Ads Adds Gross Profit Optimization Campaign Setting
Google Ads is introducing a new campaign setting called Gross Profit Optimisation. This feature allows advertisers to optimise campaigns based on gross profit, calculated using gross profit margins provided by the advertiser. Casey Gill, who highlighted the change on LinkedIn. Noted that early tests show a 15% increase in campaign profit when using this setting. To implement it, advertisers must provide cart data and cost of goods sold (COGS) in their product feed and set the optimisation goal to profit tROAS, also known as POAS. The feature is currently available in select Google Ads accounts.
11% of UK shoppers send back ￡6.6bn worth of returns each year?
A UK report reveals that serial returners, who represent 11% of shoppers, will return ￡1,400 worth of goods each this year, totalling ￡6.6bn in returns. They account for nearly a quarter of the ￡27bn forecast returns. Younger shoppers, especially Gen Z, are more likely to over-order with plans to return most items. Practices like “bracketing” (ordering multiple sizes or colours) and “wardrobing” (buying for short-term use) contribute to this rise, causing significant cost challenges for retailers. Some, like ASOS, are introducing fees for frequent returns, while others are charging for online returns to manage spiralling costs.
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