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IPA publishes 2Q Bellwether Report

The 2Q Bellwether Report, the quarterly survey of marketing expenditure, which tracks advertiser spending intentions, published today (17th July 2001) reveals that total marketing budgets for the year 2001 have been revised down - for the fourth consecutive quarter - as advertisers grow increasingly cautious about the economic environment.

19/09/2008

ECONOMIC UNCERTAINTY LEADS TO WIDESPREAD HESITATION IN COMMITTING ADVERTISING BUDGETS

The 2Q Bellwether Report, the quarterly survey of marketing expenditure, which tracks advertiser spending intentions, published today (17th July 2001) reveals that total marketing budgets for the year 2001 have been revised down - for the fourth consecutive quarter - as advertisers grow increasingly cautious about the economic environment.

There has been a shift to below-the-line expenditure in the second quarter of 2001. Both direct marketing and internet-related marketing budgets were revised up - with internet-related marketing now accounting for 2.9% of total marketing spend in the second quarter of 2001 (up from 1.8% in the first quarter). Adspend rose by 3.5% in the year to Q1 2001, up from 3.2% in Q4 2000.

The survey panel of nearly 300 UK-based companies reported that actual marketing spend outcome for 2000 had increased, although at a very subdued rate. Spend on sales promotions had fallen since the previous year with only 12% of advertisers reporting that sales promotion expenditure outcomes had been higher than the year before. However, direct marketing spend increased sharply in 2000 - with well over 25% of respondents reporting an increase compared to the previous year. As has been the case since the Bellwether Report was established at the beginning of 2000, spend allocated to direct marketing increased by a greater extent than for all other main marketing activities. 

The IPA data suggest that media advertising expenditure will be revised down during the first half of 2001 and that growth in the economy will weaken further over the same period.

Bruce Haines, President of the IPA, said, 'What this report shows is that advertising expenditure is settling back to its usual pattern of steady growth after the unusually high advertising expenditure we saw in 2000 which was brought about by a culmination of dotcom activity, Euro 2000 and so on. The IPA believes that advertising expenditure this year is going to be ahead of that for 1999 so that, averaging out over three years, expenditure in 2001 will represent a respectable growth.

'What we're seeing at the moment is clients holding back more of their budgets so they can react to changes in the economy, and more last-minute deals. It's a buyer's market with the price of television advertising on average down 15%. Now is certainly a good time for advertisers. This time last year it cost around £90,000 to have an ad in the Coronation Street break, now it's around £77,000. So, we interpret the findings in the second quarter as a pause in rising expenditure.

'It's also interesting to see that marketing spend on the internet is not the flash in the pan that some suspected it was going to be. It's a medium that is here to stay and is now larger than cinema.'

Notes for Editors

The Bellwether Report is produced for the Institute of Practitioners in Advertising (IPA) by NTC Research. It is based on a questionnaire survey of nearly 300 UK-based companies that have agreed to provide regular quarterly information on trends in their advertising and marketing activities. The survey panel, recruited from the UK's top 1000 corporations, was selected to ensure that the survey data provide an accurate indication of actual spending trends in marketing communications in the economy as a whole.

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 economics@markit.com .

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


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