First Bellwether Report sees rise in marketing budgets
The first Bellwether report, the latest industry indicator which tracks actual marketing trends within the economy is published today (17th July 2000).
The report shows that total marketing budgets set in the second quarter of 2000 rose compared with actual expenditure in 1999, with panellists reporting particularly sharp revisions to their internet marketing spending for the coming year. This is a key finding of the first Bellwether Report, the new quarterly survey of marketing expenditure produced for the Institute of Practitioners in Advertising (IPA) by NTC Research. Some 39% of companies that set new budgets reported an increase on 1999 actual spend - almost twice the number that reported a decline.
By far the largest increase was recorded for direct marketing budgets. Media ad spend budgets also rose compared with 1999 actual spend but the rise was the least significant of all three main components of total marketing. Average budgets for 'all other' marketing activities were revised upward only modestly, although the internet marketing component of this budget category was revised up very sharply, having already been revised up significantly during the first quarter. The majority of companies reported allocating a proportion of their total marketing budget to internet-related marketing. But almost one in two companies reported that this expenditure accounted for less than 1% of total marketing expenditure, whilst a quarter reported zero spending.
Although signalling a significant rise in marketing activity for the current year, the extent of the improvement was less marked than seen for new budgets set during the first quarter. This points to a reduced level of business optimism for the year ahead, compared to that indicated by the first quarter data.
Rupert Howell, president of the IPA, said, "I've always said that the advertising agencies in this country are the bellwether of the economy. This is the first quarterly survey in what will come to be regarded as one of the leading indicators of the UK economy."
The next Bellwether report, covering the third quarter of the year, will be published on 16th October 2000.
To subscribe to the Bellwether report please contact NTC Research 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).
Notes for Editors:
The Bellwether 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 provide 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. The survey was piloted in the first quarter of this year.
Last updated 19/09/2008