The latest quarterly Bellwether report from the Institute of Practitioners in Advertising (IPA) has recorded its worst ever results in its nine year-history, writes New Media Age. 49% of UK firms reported reduced advertising budgets, against 7% planning to spend more on advertising – a new balance of -42%. While all marketing sectors saw budget cuts, online remained the least affected medium, despite a record quarterly decline of 7%. Online continued to grow market share at the expense of other media, accounting for nearly 10% of all UK adspend. Main media advertising decreased by over 30%, with sales promotions and direct marketing seeing cuts of 10% each.
However, some digital firms believe the report doesn’t truly reflect the current state of online marketing. According to Mark Creighton, MD of i-level, his firm had yet to see reduced budgets. “We saw a 16% increase in online spend from the brands we work with over the last quarter, and that’s likely to be the same over the next few months,” he said.
From New Media Age, reported by i-level: http://www.i-level.com, 15/01/2009
IPA press release: http://www.ipa.co.uk
Advertisers’ reduction in ad spend between Q3 and Q4 2008