According to the second-quarter 2004 Bellwether Report, published by NTC Research on behalf of the Institute of Practitioners in Advertising, for the ninth quarter in a row the growth rate of internet-related marketing spend in the second quarter of the year was above that of other marketing activities, with a quarter of companies reporting an increase in online budget.
Budgets for media advertising, at 35% of total marketing spend, showed the largest upward trend since the first quarter of 2000, as companies perceive a brightened economic outlook. Some 19% of companies reported an increase in the second quarter, compared with 17% reporting a decrease.
Sir Martin Sorrell, chief executive WPP Group, said: "Growth in corporate profitability, operating margins and liquidity is strong -- perhaps the strongest in 20 years. The really encouraging signal is the switch to brand building through media, direct and internet-related marketing."
He added: "The report also clearly indicates the growing importance of quantifiable methods of marketing like direct and internet."
John Owen, IPA digital marketing group chairman and planning director of agency Dare Digital, said: "It's great to see an upturn in investment in mainstream media and, within this context, its very significant that internet marketing has continued its impressive growth curve."
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