Q1 2009 Bellwether shows business confidence recovering
The IPA’s latest Bellwether survey published today (6th April 2009) has found that the rate of decline of marketing spend slowed in Q1, suggesting budget cutting may have reached its peak in Q4. Business confidence has picked up from the all-time low of Q4, with the percentage of companies believing their prospects have improved rising from 5% to 14%.
Says Moray MacLennan, IPA President, “This data supports the view that the bottom of the market has been reached. It will be a long road to full recovery, but this maybe the turning point. It’s good to see a graph going in the right direction for a change.”
Although the overall budget cut is still the second steepest decline in the survey’s nine-year history, with spend set to fall again in 2009, the net balance of those reporting an increase minus those reporting a decrease rose from -42% in Q4 to -34% in Q1.
By sector in Q1, hardest hit were budgets for main media advertising and ‘all other’ (includes PR, events sponsorship and market research). Internet advertising suffered a record reduction in spend, but at a far weaker rate than for total marketing spend, indicating a gain in share now estimated at almost 10%.
The Bellwether Report is researched and published by Markit Economics on behalf of the IPA. It features original data drawn from a panel of around 300 UK marketing professionals and provides a key indicator of the health of the economy. The first report was published on the 17th July 2000. Historical data is available on request to firstname.lastname@example.org Topline figures and industry reaction is also available on the IPA website www.ipa.co.uk
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Says Jim Marshall, Chairman, Starcom, Chairman, IPA Media Futures Group, "This report doesn’t paint a particularly rosy picture but does suggests the outlook isn’t quite as pessimistic as some months ago and while we are not expecting an immediate recovery this certainly shows a commitment to maintaining advertising support whilst reflecting the severe cost pressures on the part of advertisers."
Says Arjo Ghosh, CEO, iCrossing, Chairman of IPA Search Group, "The measurable and dynamic nature of search helps it to continue to provide value to clients in very challenging marketing environment. Search is the medium that puts companies in direct contact with the customer at their point of need so it should be no surprise that search remains robust."
Last updated 20/04/2009