Ad market confidence at its best since 2007
Advertisers are showing confidence in the advertising market for the first time since the beginning of the recession in 2007, according to the latest Bellwether report.
In the quarterly report for the Institute of Practitioners in Advertising by BDO, 21% of marketing directors said they had increased their ad budgets in the first quarter of 2010, compared with 16% who had cut it.
Furthermore, 36% plan to raise their spending in the new financial year, compared with 24% who have reduced their budgets.
Around 42% said they were more optimistic about their own company’s financial prospects than they were at the end of 2009.
Chris Williamson, chief economist at Markit and author of the report, believes the results indicate a necessary ingredient for a more stable economic recovery.
He said, "This is very encouraging news for the UK economy as it suggests that companies are at last beginning to increase their spending and move away from the aggressive cost control measures which characterised the recession.
Internet advertising spend resumes growth more than nine months ago while traditional media budgets have now been revised upwards for the first time in 10 quarters. Sales promotion and direct marketing are yet to see any real improvement.
Rory Sutherland, IPA president and vice-chairman of Ogilvy Group UK, added, “It’s good to see that businesses are now increasing their investment in marketing as a route to growth – a welcome change in sentiment compared to this time last year. While online activities are leading the turnaround this year, the findings show that conventional advertising has now also turned the corner.”
Source: Utalkmarketing.com
Simon Lewis | Editor | Only Marketing Jobs
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