Ad spending cuts ease as consumer confidence recovers

The decline in advertising spending is slowing as signs of an upturn in consumer confidence emerge, according to Nielsen.

In a report into how the recession has affected brands and consumer behaviour, the research company says advertising expenditure dipped 10% year on year in September compared with a 16% decline in May 2009.

The report claims that many “leading” brands are now showing year on year quarterly growth for the first time in 12 months.

Nielsen says increased spend was seen in retail sector, in particular among leading homeware chains such as DFS, B&Q and SCS, who collectively increased spend on advertising in the six months to 30 September after cutting investment in the previous two quarters.

The slowdown seen by Nielsen mirrors data unveiled by the IPA in October, which also found fewer marketers reporting a decline in their budgets.

The research firm also indicated that consumer confidence could be slowly returning.

Two-thirds of consumers say they spent less on clothes in the three months to the end of September compared with 71% registering a dip in the previous quarter, while those looking to save on gas and electricity bills fell from 68% to 59%.

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