According to the latest Bellwether Report, published by the IPA and based on research carried out by NTC Research, internet marketing budgets were revised upwards for fifth quarter in a row, with more companies raising their budget since the second quarter of 2000. One in four companies increased spending on internet marketing, while only 5% cut spend.
The only other discipline to record an increase was direct marketing.
The survey found the companies were shifting budget towards internet spend because of the cost efficiency and accountability of marketing through the internet, which they had established from past campaigns.
Stephen Woodford, CEO of WCRS and president of the IPA, said: "The first quarter 2003 Bellwether Report is reflecting the current wait-and-see attitude of advertisers towards spending their marketing budgets.
"Certainly the war in Iraq, as well as a continued tough economic climate at the moment, is foremost on advertisers' minds, but there are definitely some encouraging indicators. The general picture appears to be that the rate of decline in current media spend budgets is slowing significantly. We're seeing media adspend budgets stabilising and increases in DM, sales promotion and internet marketing activities as well as 'all other' activities including PR."
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