Despite the positive trend, 45% of companies surveyed reduced marketing budgets for the past three months, compared to just 11% that reported an increase.
Budgets for 2009 have, on average, been set lower than actual spend in 2008. This is the first time since the survey began that initial budgets have been set below that of the previous year.
Compiled by Markit and published by the IPA, data from around 250 UK-based companies suggests business confidence has picked up from an all-time low. The percentage of businesses believing their prospects improved has jumped from 5% in Q4 to 14% in Q1.
The hardest areas hit were budgets for media advertising, PR, events sponsorship and market research.
Internet advertising also suffered a record reduction in spend, albeit at a far weaker rate than cuts in total marketing spend.
Chris Williamson, author of the Bellwether, said: ‘The Bellwether raises hopes that a bottom was reached in Q4 and that the rate of budget cutting will ease as we move through 2009'. But ‘any return on growth still looks a long way off, however', he confirmed.
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