Advertising budgets for the remainder of the year are being cut
back, according to the Institute of Practitioners in Advertising’s
latest Bellwether Report.
The report, which tracks the marketing spend of more than 200 UK
companies, reveals media budgets for the year have been revised
Total adspend is now expected to end up 4.4 per cent lower than it was
in 1999. At the end of the first quarter, it was predicted total spend
for this year would be 7.2 per cent higher than 1999.
The report’s predictions for 2001 are more pessimistic than previous
Companies setting 12-month media budgets in the second quarter are now
predicting their total spend will, on average, be only 6.7 per higher
than it was last year.
Those setting budgets in the first quarter were forecasting an increase
of 25 per cent.
The results also show a shift from above-the-line advertising to direct
marketing, which is expected to end the year 4.8 per cent higher than
Marketing budgets for internet-related projects have been revised up
sharply. However, nearly half the companies said web spend still
accounted for less than 1 per cent of their total marketing budget.
The Bellwether Report is produced for the IPA by NTC Research.
IPA president Rupert Howell said: ’This is the first quarterly survey in
one of the leading indicators of the state of the UK economy.’