According to the Bellwether Report, released today, the shift back to advertising has been the largest since the survey began, with 19% of companies revising their budgets up over the second quarter of the year.
Other sectors to see an increase in budgets were direct marketing, up by 2.2%, and internet-related marketing, which saw 17% of companies spending more on the medium. Those to see budgets cut were sales promotion and other marketing, which includes PR, sponsorship and market research.
The strongest-performing sectors were retail, FMCG, IT and computing and media. The weakest performance was in travel and entertainment.
Sir Martin Sorrell, chief executive of WPP Group, said: "The Bellwether Report findings are not surprising. Growth in corporate profitability, operating margins and liquidity is strong, perhaps the strongest for 20 years. The really encouraging signal is the switch to brand building through media, direct and internet-related marketing."
However, Sir Martin pointed out that, for WPP, the UK market remained "relatively difficult", along with France and Germany.
Carolyn Carter, chief executive of Grey Global Group EMEA, said: "On the whole this confirms our own experience of strengthening client confidence and willingness to invest."
However, Carter warned that it might not be a long-lived phenomenon. "The rebound of traditional media powerhouses, television and press, may be benefiting from transient drivers such as events like the Euro 2004 football championships and a surge in previously deferred new product launches," she said.
The Bellwether Report is released by the IPA and compiled by NTC Research, based on information from a panel of 250 UK marketing professionals.
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