The shake-out among dotcom companies is slowing the growth in
marketing budgets, according to new research commissioned by the
But prospects remain buoyant with four out of ten companies setting new
budgets reporting an increased marketing spend - almost twice the number
that reported a decline.
The findings come in the first edition of the Bellwether Report, a
quarterly monitor carried out by NTC Research among almost 300 UK-based
companies to identify trends in communications budgets.
The survey includes above- and below-the-line budgets as well as
spending on new media. It is part of an initiative by Rupert Howell, the
IPA president, to promote advertising’s importance in the competitive
Direct marketing accounted for the largest increase in spend, the report
finds. Media adspends have risen too compared with last year, although
the rise was the least significant within the total marketing spend.
Nick Phillips, the IPA’s director-general, said that the slowdown was
because of the rationalisation going on among the dotcoms.
’The frenetic advertising activity that was happening six months ago has
slowed and there is a big shake-down happening,’ he commented.