The optimistic topline comments from the advertising trade body are relative to record cuts in marketing budgets in Q4 2008.
Overall cuts in the first quarter still represent the second steepest decline in the nine-year history of the survey, which draws upon the budgets of some 300 leading marketers.
The net balance of those reporting an increase against those reporting a decrease rose from -42% in Q4 to -34% in Q1. Yet 45% of all companies surveyed revised down their marketing budgets for the current financial year in Q1, far exceeding the 11% that reported an increase.
The figures suggest that while Q4 of last year may have seen a peak in the rate at which companies reduced their marketing spend, companies remain under intense pressure to cut marketing costs.
The survey also provided provisional data on actual marketing spend in 2008 and confirmed the first annual fall in the survey's history, after 48% of respondents reduced spend, compared to just 10% that increased it.
Moray MacLennan, president of the IPA, welcomed the data as evidence "the bottom of the market has been reached". He added: "It will be a long road to full recovery, but this maybe the turning point."
The implications of today's improved outlook are open to debate. Last month, WPP chief executive Martin Sorrell characterised the current recession as "L-shaped", referring to a downturn for a protracted period before real growth kicked in.
The scenario remains viable, as does a "V-shaped" recovery, which would mean a mirror-shaped reversal of the downturn occurring during the rest of the year.
Marketing spend for traditional media, including television, press, radio and outdoor, continued to be the hardest hit according to the survey, contracting by about a third (34%) in the past three months.
However, both internet advertising and search were not immune to the depressed market conditions, posting record drops of 10% and 2.4% respectively. There were also double-digit falls for marketing budgets for sales promotion (13.7%) and direct marketing (13%).
Although many companies continued to be pessimistic about their financial prospects, the proportion in the survey believing their prospects were getting worse fell from 63% in Q4 to 44% in Q1.
Business confidence has also picked up, with the percentage of companies believing their prospects have improved rising from 5% to 14%.
Chris Williamson, chief economist at Markit and 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."
.jpg)
.jpg)