The report, researched and published by Markit Economics for the Institute of Practitioners in Advertising (IPA) showed a net balance of +12.6% of companies increasing budgets during Q3 2014.

Although this is down for a second quarter running (from previous record survey highs of +20.4% in Q1 and +15.2% in Q2 ), it marked continuous growth in marketing budgets.

In terms of actual spend, the Q3 survey marks the mid-point of the 2014/15 financial year and suggests that full-year marketing budgets are on course to be higher than those initially set earlier in the year. A net balance of +26.0% of companies recorded an uplift in their marketing budgets, relative to the 2013/14 accounting period.

The sharpest upward revisions to marketing budgets were made to internet (+14.5%) and main media advertising (+9.2%) however market research (-1.7%) and sales promotion (-1.1%) saw budgets reduced slightly.

Denise Turner, managing partner, chief insight officer, Havas Media said: “Market research is a vital tool in the marketing director’s armoury, giving them the confidence to make those big decisions about increased marketing investment.  As such the investment in market research often comes before the increase in investment.  We are seeing a sustained increase in advertising investment, no doubt as a result of previous investment in research.  It is pleasing to see that investment in market research is remaining relatively steady over time with the majority of panelists ( 79%) leaving their market research budgets unchanged.”

Paul Bainsfair, IPA director general added: “Two years of continuous investment in marketing budgets, coupled with sustained confidence, has enabled the industry to innovate and diversify, and crucially to drive business growth. It is good to see companies adapting to the complex media landscape and capitalising on the positive economic climate.”