Ad spend rising at fastest rate for seven years

Advertising spend is growing as its fastest rate for seven years as marketing budgets are increased for the second successive quarter, according to the latest Bellwether Report.

The quarterly report, published by the Institute of Practitioners in Advertising, shows that one-in-five companies have reported an upward revision of their media budgets. It says that “such acceleration” in the second quarter of the year suggests that marketing spend for 2007 may be higher than first budgeted at the start of the year.

Internet advertising has continued to see the strongest growth and now accounts for 6% of all marketing spend. The report shows one-in-five companies now allocating at least 10% of their total spend to the internet. However, there was also strong growth in direct marketing and traditional media.

The biggest increase in budgets has been reported from companies in the service industries such as IT, computing, travel and entertainment as well as retailers whereas the industrial and utilities sectors saw the decreases in spend.

Chris Williamson, from NTC Economics and the report’s author, says: “Marketing spend is clearly rising sharply, with growth in the second quarter boosted by a buoyant economy and strong profits growth, particularly in the service sector, where profitability is currently rising at record rates.”

But WPP Group chief executive Sir Martin Sorrell says that while the report shows some “encouraging” results but he adds: “The UK remains the laggard, with growth in China, India and Russia leading the way.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here