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UK Marketing Spend Down Again, but Prospects Better
UK marketing spend fell for the eighth quarter running in Q3, but the fall is still slowing and marketers are more optimistic, according to the latest quarterly IPA/BDO Bellwether survey, which is published today.
The reduction in marketing budgets was the smallest in over a year. Internet ad budgets have begun to rise again after a break of five quarters, 'though this was the only category to see an increase. The 'All other' category, which includes MR in addition to PR, events and sponsorship once again saw the steepest cuts.
Retail and 'travel & entertainment' saw slight rises in spend, while the sharpest drops came in financial services, other non-governmental services, IT, and industrial sectors.
In line with signs that the economy is headed out of recession, forty-seven per cent of companies in the survey said prospects were improving.
The report, conducted for the IPA by Markit Economics, is based on data from a panel of around 300 UK marketing professionals, and was first published in July 2000.
Rory Sutherland, IPA President and Vice Chairman of Ogilvy Group UK, comments: 'Although marketing spend is still falling this latest Bellwether is an encouraging sign that budget cutting is slowing. Whilst companies are still understandably wary the report reveals a strong rise in business confidence and the suggestion that GDP may well have risen in Q3. It will be interesting to see whether the rise in internet spend will presage an upturn in other categories.'
Top line figures and industry reaction are available on the IPA web site at www.ipa.co.uk .
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