Q1 Bellwether reports weakest rise in marketing spend since 2002
The Q1 2006 Bellwether Report, the quarterly survey of marketing spend, published today (18th April 2006) for the IPA by NTC Economics, reveals a cautious outlook by advertisers, with total marketing budgets revised down for the fourth consecutive quarter.
The report also shows a continuing change in the breakdown of marketing expenditure; away from main media and sales promotion and into direct marketing and the internet. Direct marketing was the only Bellwether category for which the actual outcome of spend exceeded initial budget setting in 2005.
The Bellwether report contains detailed analysis of the UK’s marketing economy, based on a survey of 250 companies, representing all key business sectors.
To subscribe to the Bellwether report please contact Markit on 01491 418 700, email
Bellwether costs £500 per annum (£375 for IPA members) for the report, £650 per annum for the data (£487 for IPA members) and £1000 per annum for both the report and data (£750 for IPA members).
The highlights of the Q1 2006 report, which was undertaken in March 2006, are:
Budget setting for 2006-2007 is subdued compared to previous years - the weakest recorded since 2002.
Traditional media budgets were cut for the sixth quarter in a row. Adspend is set to rise on last year, but at a weaker rate than the past two years.
Sales promotions budgets were cut for the fifth consecutive quarter and saw the steepest drop compared to the other media categories.
Direct Marketing saw a marginal cut in current budgets but is expected to outpace all other Bellwether categories during 2006-2007.
Internet advertising was the only media to have budgets increased in Q1 - the strongest gain since Q1 2004.
Marketing spend for 2005-2006 was well below the initial budget settings for the year.
Said David Pattison, IPA President, Chief Executive, PHD:
“The Bellwether report continues the trend of spend moving away from the traditional media areas towards the consumer engagement media of direct marketing and the internet. Whilst overall growth is predicted for 2006 this growth is at its lowest level since 2002. Consumer spending is slowing and this traditionally directly affects our industry. There is optimism that our industry will grow this year but it looks a limited in the current market conditions.”
Said Sir Martin Sorrell, Group Chief Executive, WPP:
“The IPA Bellwether report confirms our experience. The UK remains one of the weakest geographical markets at the moment. But new media and new technologies are growing rapidly as clients experiment with different approaches and question the value of traditional media.”
For press enquiries regarding Bellwether please contact Richard Lambert in the IPA Press office on 020 7201 8261 or email
Note to editors:
The IPA is the industry body and professional institute for UK advertising, media and marketing communications agencies. It was established in 1917 as a servicing body and to negotiate on behalf of its members with media bodies, government departments and unions. Its 250 corporate members represent the major part of the advertising agency business, handling advertising with an estimated value of some £13,000 million per year (over 80 per cent of advertising placed by agencies) on behalf of their client companies and organisations nationwide. (note this figure is based on 2005 Advertising Statistics Yearbook figures and excludes classified and television production costs).
For further information:
Chris Williamson, Report Author, NTC Research tel: 01392 202361
David Pattison, IPA President and Chief Executive, PHD Group tel: 020 74460 555
Wayne Arnold, Managing Director, Profero, Deputy Chairman, IPA Digital tel: 07 976 763 161
Tom George, Managing Director, Mediaedge:cia UK, responsible for the FUTURE of TV on the IPA Media Futures Group tel: 020 7803 2000
Press Office tel:: 020 7201 8261
Last updated 19/09/2008