The survey by the Institute of Practitioners in Advertising shows that marketing budgets for 2002 were set higher than 2001, but that the rise, 18.5%, was the smallest to date. It also says current total marketing budgets were revised down in the last quarter of 2001 by a greater margin than ever before -- 13.5%.
The survey, which is seen as reflection of the wider economic situation, found that more than 28% of companies will cut their media budgets.
Sectors hardest hit by the cuts are financial services and, predictably, travel and entertainment. Retail and consumer sectors saw the strongest growth of budgeted spend for 2002.
The report reveals that of all the marketing disciplines, advertising will be the hardest hit from the downward revision of budgets, while direct marketing and sales promotion look set to see increased spending. Direct marketing was the only service to have seen an increase in budgets during the fourth quarter of 2001.
The Bellwether Report is seen as the barometer of the advertising industry. Carried out on behalf of the IPA, it surveys 200 UK marketing professionals from all key business sectors.
Bruce Haines, IPA president, said: "Although media adspend has made a slight recovery from the third quarter, we are still seeing a shift towards direct marketing and, to a lesser extent, sales promotion. The market place is cautious but, we believe, optimistic."
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