Marketing budgets continue “severe” decline

Marketing budgets continued to decline at a “severe” rate in the second quarter but there are signs that marketers believe the worst is behind them, according to a report.

Rory Sutherland
Rory Sutherland

The IPA’s Bellwether Report for the three months to the end of June shows that only 10% surveyed revised their marketing budgets up in the quarter while 38% reported a reduction as sales declined in a weakening economy.

However, the scale of downward revision eased for the second quarter in a row, prompting IPA president Rory Sutherland to believe the worst could be over.

“To anyone optimistically inclined, the April Bellwether seemed to signal the bottom of the market, and the new report suggests the worst is over.”

Marketers also appear to be reporting a slight improvement in business confidence.

The report shows one in three companies reporting that their firm’s financial prospects had improved in the quarter compared to one in four reporting deterioration. .

Despite some optimism the worst of the recession could be over, the report hits also hits a sober note, warning that current downward revision could push 2009 marketing spending even lower than last year, which saw the first annual fall in the survey’s history.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

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

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest 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 will be 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.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

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