Only 7% of companies reported an upward revision to overall marketing budgets in this quarter's report, while 49% reported a decrease, giving a balance of minus 42%.
The poor findings follow on from the last quarter's report, which was previously the worst on record. For the first time in the survey's history. budgets have been cut for the year ahead.
There were negative readings for all sectors of marketing including internet and internet search, which were the only growth areas in the previous report.
As with the previous quarter the worst readings were for the media and all other categories -- which include PR, events and market research. Each are down by more than 30%.
Moray MacLennan, the president of the IPA and M&C Saatchi Europe chairman said: "This suggests adland in 2009 will be no place for the faint-hearted. Confidence has plummeted and the data suggests a steep decline in GDP in Q1."
The report also found the survey suggested marketers were shifting budgets towards discounting as a means of stimulating demand.
Chris Williamson, chief economist at Markit and author of the report, said: "The Bellwether shows an alarming rate of corporate retrenchment as the recession deepens, with spending on marketing being cut at a rate far greater the ever previously seen over the survey’s history.
"Disappointing sales in all sectors have also led companies to cut budgets for year ahead for the first time since the survey began, suggesting there will be no quick return to growth for marketing spend."
Below: Chart shows net balance of companies revising marketing budgets down in Q4 2008 from the IPA Bellwether survey.
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