The latest Bellwether report has found that in the third quarter, marketing budgets were cut to the highest degree witnessed in the IPA report’s nine year history.
This is the fourth successive quarterly reduction in spend indicating that companies are feeling the pinch in the current economic climate.
The President of the IPA has said that it is unlikely the results will surprise anyone.
Said Moray MacLennan, IPA President: “In light of current headlines the biggest surprise may well be that 12% of companies’ budgets were revised upwards. The industry will be watching the next set of results with great interest hoping that, following four quarters of decline, the downward curve levels off, despite the impending recession."
Hardest hit were budgets for main media advertising and ‘all other’ (including PR, events sponsorship and market research). All marketing categories saw downward revisions with the exception of the internet, but even this category saw budget expenditure for the year held steady. Internet search was the only category to see an increase yet the rise was only marginal.