IPA Bellwether: Online Ad Spend Growing But Recession Continues

Almost half of UK advertisers agree there are “improved prospects” now evident in the UK ad market and the number of firms increasing their online spend is on the up. The IPA quarterly Bellwether survey for Q309, the first in partnership with BDO International, shows that 47 percent of ad companies think the economy is improving and, while overall ad spend dropped for the eighth consecutive quarter, the amount of firms increasing their online budgets increased by 4.5 percent compared to Q209. Traditional media channel spending — print, TV, radio, cinema, direct marketing and outdoor — fell 10.4 percent. Release and more stats from Guardian.co.uk.

It’s not time to crack open the champagne yet, but judging by past Bellwether surveys, it’s a strong indicator the worst is now over. In Q408 ad spend fell to the worst level for nine years with budgets falling 35 percent in the quarter alone, followed by the second biggest decline in Q109

IPA president Rory Sutherland says: “Although marketing spend is still falling this… is an encouraging sign that budget cutting is slowing… It will be interesting to see whether the rise in internet spend will presage an upturn in other categories.”

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