It found that 43% of companies have increased their direct marketing budgets for 2004 while only 17% have decreased them. Strong sectors are consumer durables, computing, motors and financial services, while media and entertainment were the only sectors to decrease budgets.
The Bellwether Report painted a rosy picture for the advertising industry in 2004. It found that more than 50% of advertisers are preparing to spend more money and claimed that the market is the most optimistic it has been since the dotcom boom.
Chris Williamson, author of the report, said: "Marketing and advertising executives are entering 2004 in the most optimistic mood since the height of the dotcom boom."
He said that growth was being driven by rising profits rather than simply because of business confidence.
Sir Martin Sorrell, chief executive of WPP Group, said that the trends were not surprising, given a 25% rise in US corporate earnings in the last quarter of 2003.
"Corporate profitability is improving but up to now mainly as a result of cost reductions. Perhaps now the focus is switching to top-line growth and advertising and marketing services spending is rising as a result," he said.
The Bellwether Report, published quarterly by the IPA, is based on research by NTC Research.
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