Advertisers cautiously optimistic
Apr 22 2002
A comprehensive report on marketing budgets for the first quarter of this year shows advertisers cautiously optimistic. The findings come from the latest Institute of Practitioners in Advertising (IPA) Bellwether quarterly report. These show that direct marketing budgets in particular look set to rise.
The survey, which looks at new budget setting, current budget revisions and actual spend of over 200 companies from a range of sectors, reveals an upward revision in current total marketing budgets for the first time since the second quarter of 2000. This is being regarded as a reaction to the uplift in sales revenues and "business sentiment" experienced, compared to the second half of last year. Of those setting new marketing budgets, 42% increased investment in marketing while 26% cut back.
Author of the report Chris Williamson said that it "suggests business optimism has picked up significantly since the lows of late last year and, although advertisers continue to exercise a great deal of caution in freeing up budgets, a corresponding marked turnaround in sentiment towards expenditure on advertising and marketing in general is apparent."
One area in which marketing budgets rose in the first three months of this year was direct marketing, 18% of respondents reporting an increase in spending. Internet marketing produced a marginal increase, 13.3% of advertisers increasing and 12.5% cutting investment, suggesting a mixed sentiment for the medium.
The outlook for media advertising is decidedly mixed, with 27.6% of advertisers planning to increase media advertising investment, 48.3% not changing and 24.1% intending to reduce. Of all the categories, direct marketing displayed the biggest rise for new budget setting.
Chairman of the IPA Bruce Haines commented that "we have some way to go before a more sustained return to growth can be assured, but these are welcome signs of recovery."
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com.
(18/4/02)
There are currently no comments on this article
Comments