The IPA has countered recent speculation about a slowdown in advertising with research suggesting that more companies will increase their media adspend for the coming year than will decrease it. Nearly half of around 300 respondents to the Bellwether Report, a questionnaire survey of UK-based companies, said that 2001 budgets compared to last year’s spend, while around 18% reported a decrease as a result of the weak revenues suffered in the latter part of 2000. However, Q4 of last year did see a less marked increase in overall spending than the previous quarter, suggesting a drop in business confidence.
“Marketing spend looks as if it will continue to grow this year, albeit at a slower pace,” said Rupert Howell, president of the IPA. “Estimates for this year look positive.”
The report found that, on average, almost one third of total annual marketing budgets goes to media advertising, a figure estimated at £33bn. Spending on the internet reached 1.8% of total budgets during the last quarter of 2000, representing an estimated £660m. Proportionally, the spend on direct marketing is set to see the greatest increase during 2001. 40% of companies reported that their budgets for this area will be higher, compared to 13% who indicated a decrease.
