Advertising’s share of communications budgets has fallen 9% in real terms during the current recession, according to a new survey from Rhino Communications.
Below-the-line specialists have not been hit so cruelly, with design, print and direct marketing in particular increasing their shares of the comms budget by 5% each.
Of the disciplines perceived to be most critical to companies’ effectiveness over the next five years, advertising’s share has slipped from 40% in 1989 to 20% in 1991. The survey reveals that companies are also rationalising their roster of specialist agencies – on average down from seven to three.
The survey was conducted amongst the UK’s top 800 advertisers during April this year.
Only 5% of respondents said they were completely satisfied with the use of their communications budgets, with almost 40% saying that 15% of the budget is wasted because of poor targeting.
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