The majority of advertisers do not believe that the UK is facing a
recession but a third are planning to reduce their advertising budget
Asked if a significant recession was likely in the next 12 months in the
UK, 23 per cent of respondents to the Media Audits 2001 Advertiser
Survey said "yes". But 29 per cent plan to reduce their advertising
budget over the next year.
Half of all clients are planning to review their media within the next
two years and 17 per cent within the next six months.
The report also shows that clients are unimpressed with technologies
such as TiVo and video-on-demand. Some 30 per cent said that TiVo is
"irrelevant" to their communications strategy. Although most advertisers
saw the internet as part of their strategy, just 9 per cent believed
that their online budget was being spent "very effectively".
Some 52 per cent of advertisers agreed that online spend will decrease
more quickly than in other media and 62 per cent of advertisers said
there was too little transparency or accountability in the online
The report also suggested that advertisers are unhappy about the
regulation of the TV market. More than two-thirds were in favour of the
commercialisation of the BBC and 40 per cent were unhappy with plans to
keep the BBC outside the control of the regulator Ofcom.
Most advertisers surveyed - 56 per cent - still pay their media agency
on a commission basis, with 35 per cent paying by fee and 8 per cent
using a combination of elements.
Interactive TV is used by a minority of advertisers, with 11 per cent
having experimented in this area. Most advertisers, 58 per cent, have
not been briefed by their media agency on interactive TV.
The report also suggests there is a trend towards centralisation of
European media accounts. Some 26 per cent of clients intend to
centralise European media accounts within the next five years, with 10
per cent over the next two years. However, 23 per cent said they would
never centralise media accounts.
Responses to the report, which involved replies from 50 major
advertisers across all sectors with a total advertising spend of £700 million, were made before events in the US on 11 September.
Martin Sambrook, the managing director of Media Audits, said: "Some of
the attitudinal responses to issues involving new technology are
interesting. Advertisers don't see the benefit of TiVo and interactive
TV. So many hopes have been placed on these technologies as a new
paradigm. Negative attitudes to mobile communications suggest that
technology is seen as not perfected."