Recovery gains momentum

The recovery in UK adspend is gaining momentum with many companies set to increase their budgets, according to new research.

But the extra investment is being diverted mainly into activities such as direct marketing and the internet, rather than into above-the-line campaigns, the IPA's latest Bellwether Report suggests.

A quarter of the companies taking part in the research said they were revising budgets upwards on the back of higher sales revenues and improving profits. Consumer durables, automotive and FMCG are among the sectors reporting the most marked increases in adspend.

The report also confirms that the number of companies boosting budgets has exceeded those reducing them for the second successive quarter.

The results are fuelling the optimism of industry chiefs who claim not to have seen a more positive advertising climate since the recession began to bite at the end of 1999. "The economic recovery is becoming more firmly established," Stephen Woodford, the IPA's president, said.

Chris Williamson, the report's author, said: "The survey provides further evidence to suggest that a revival in UK advertising and marketing spend is well under way."

Almost half of the companies setting ad budgets for the next financial year indicated that they would be increasing their spends, suggesting a growth rate not seen by Bellwether researchers since 2000.

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