UK advertisers set to cut back media budgets, says IPA

Advertising budgets for the remainder of the year are being cut back, according to the Institute of Practitioners in Advertising’s latest Bellwether Report.

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

down.



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

estimates.



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

1999.



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.’