3Q 2000 Bellwether Report published
The Bellwether Report, the quarterly advertising and marketing industry indicator which tracks actual trends within the economy, reveals in its third quarter report published today that internet marketing has risen to 2.5% of total marketing budgets from 1.5% in the second quarter. In addition, the number of companies allocating over 5% of their budgets to internet marketing rose from 8% to 14%.
Over half (55%) of all companies setting new total marketing budgets for the next financial year (2001) reported that expenditure had been set higher than for the current financial year. Only 19% reported a decline. In contrast, companies reported that their total marketing budgets for the current financial year (2000) had been revised down on average during the third quarter - the first downward revision recorded by the survey since data were first collected at the start of the year. As far as sales promotion was concerned, over one in four companies raised their budgets for the third quarter of the current financial year.
"Attention will focus on the level of claimed and intended Internet spend," said Hamish Pringle, Director of Marketing Strategy at the IPA. "It's astonishing how quickly it's grown. In 1999 commercial radio accounted for 5.5% of all marketing expenditure and the Internet spend is well on the way to half that level."
Rupert Howell, President of the IPA, said, "We believe that the advertising and communications industry is a key leading indicator of the future state of the UK economy, and the Bellwether Report sets out to validate our hypothesis. As we build up our quarterly trend data and these Reports gain authority, I suggest that CEOs and the City include the Bellwether Reports in their basket of key inputs for future planning."
There is no figure available for the total marketing expenditure in the UK. However, the figure for advertising expenditure in the UK last year (1999) was £15,312 million. This indicates that marketing expenditure was in the region of £20 to £35 billion, and suggests that the expenditure on internet marketing was at least £500 million.
The Bellwether Report is a quarterly survey of marketing expenditure produced for the Institute of Practitioners in Advertising (IPA) by NTC Research. The Reports are based on a questionnaire survey of nearly 300 UK-based companies that have agreed to provide regular quarterly information trends in their advertising and marketing activities. The panel has been carefully selected to ensure that the survey data provides an accurate indication of actual marketing trends in the economy as a whole and includes a broad variety of advertisers in terms of company size, market sector and geographical location. This is the second Report, following a pilot exercise in the first quarter of the year.
The next Bellwether Report, covering the last quarter of the year, will be published on 15th January 2001.
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).
Last updated 19/09/2008