Budgets have now been cut for the fifth successive quarter with further reductions anticipated for 2009 as companies set their initial budgets for the New Year well below a year ago.
According to the findings, three-quarters of companies believed that financial prospects facing their industries had deteriorated over the past quarter.
Also less affected than other media channels, internet budgets also saw a record reduction in spend in the final quarter of 2008.
Commenting on the latest figures, IPA President Moray MacLennan, said: ‘This Bellwether Report suggests that adland in 2009 will be no place for the faint hearted. Confidence has plummeted and the data suggests a steep decline in GDP for Q1.
‘Nevertheless, given that marketing and creativity are the solution and not the problem, it will be interesting to see when the investment community starts to look favourably on those who maintain budgets and increase share of voice, as they are more likely to succeed in the future.'
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