
Graph showing changes in marketing spend by category
Marketing spend fell for the eighth consecutive quarter but nearly half of companies surveyed are seeing improved prospects, says the latest IPA/BDO Bellwether report.
The Bellwether report says that while budgets dropped once more in Quarter 3 it was the smallest reduction in more than a year. The proportion of respondents reporting a decline in budgets eased to 28% while the number reporting a rise moved up to 13%.
The report finds that business confidence is on the rise with respondents saying that the degree of optimism in regard to financial prospects for their own companies was at its strongest since the final quarter of 2006, with 47% seeing improved prospects.
As excepted, among companies surveyed, only internet advertising was the only category to see an increase in spend with marketing budgets rising for the first time since Q2, 2008. The steepest cut in spend came for the âall otherâ category, which embraces PR, events and sponsorship.
Cuts in main media advertising were the smallest for six consecutive quarters. Spend was also cut for direct marketing and sales promotion, though both saw only modest falls.
The research found that the retail, travel and entertainment sectors saw increases in spend, with the steepest falls seen in financial services, IT and computing, and industrial sectors.
After a period of dramatic falls across virtually all sectors, it has meant a rude awakening to both marketing departments and agencies alike, what long term impact this will have on the industry is anyoneâs guess.
The most important issue and that which will make the most difference are the strong rise business confidence, and the suggestion that we may see a rising GDP in Q3.
Steve