Biggest ever drop in ad budgets, finds Bellwether survey

Ad budgets have been revised down by the greatest amount ever, according to the latest Bellwether survey from the Institute of Practitioners in Advertising (IPA).

Online, which now accounts for almost 10% of all ad spend, suffered a record reduction in spend, dropping 7%, but this was the smallest drop compared to other media.

Main media advertising dropped over 30%, while sales promotions and direct marketing dropped over 10% each.

The cut, in Q4, was the fifth successive quarterly reduction in spend and IPA expects the trend to continue throughout this year.

Moray MacLennan, IPA president, said, "This Bellwether Report suggests that adland in 2009 will be no place for the faint hearted. Confidence has plummeted and the data suggests a steep decline in GDP for Q1."

Published by: Luan Goldie

Published 12th January, 2009

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