LONDON: Some 72% of UK firms plan to increase their digital marketing budgets this year, a new study has indicated.

Econsultancy's Marketing Budgets 2011 report suggests that the typical company will boost its digital spend by 35% from 2010 levels.

When the same survey was taken a year ago, these totals stood at 68% and 33% respectively, signalling more and more advertisers are becoming convinced of the effectiveness of online campaigns.

An improving UK economy could also be a factor, although official figures released last week show British GDP contracted 0.6% in Q4 2010 following four consecutive quarters of growth.

Elsewhere in the report, Econsultancy suggested marketing budgets as a whole would rise in 2011, with 52% of the survey panel forecasting an improvement in advertising and promotional expenditure.

Linus Gregoriadis, Econsultancy's research director, said: "The effectiveness and measurability of digital is giving companies confidence that offline marketing investment is also paying dividends.

"Companies are investing in offline marketing channels to complement increased digital investment, with integrated campaigns which – for example - use television and radio advertisements to drive searches and website traffic."

The Econsultancy report is based on a survey of 500 UK marketers, both in-house and agency-based.

Latest Warc figures suggest that UK adspend will rise by 2.4% in 2011.

Data sourced from Econsultancy; additional content by Warc staff