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%.

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