Advertising continues to enjoy a lowly status in many of Britain’s
boardrooms, with company finance directors among the most sceptical, a
new survey claims.
The marketing director is a board member in less than a quarter of
companies and detailed reports on advertising and marketing are rarely
given to shareholders.
At the same time, finance directors put advertising and marketing
budgets at the top of their ‘hit lists’ when business results falter.
The verdicts come in a survey carried out jointly by the Institute of
Practitioners in Advertising and the consultancy firm, KPMG, among
100 finance directors from top client companies.
The IPA said it will renew its efforts to convince companies of the link
between advertising investment and commercial success and campaign for
increased coverage of marketing and advertising activity in annual
reports and at annual meetings.
Hamish Pringle, the chairman of the IPA’s Advertising Effectiveness
Committee, said: ‘The survey has exposed some of our worst fears.’
It comes as a major blow to the IPA which has been working steadily to
convince the City of advertising’s value.
Copies of the report are available at pounds 10 each from Linda
Calderwood-Lea at the IPA on 0171-235 7020.