The research shows that in the last quarter of 2003 more companies were revising their internet marketing budgets upwards than since the second quarter of 2000. A quarter of companies reported a rise in internet spend while only 4% said they were cutting it.
It also found that internet marketing had performed better than all other categories of marketing spend monitored by the Bellwether Report for seven consecutive quarters. However, it did reveal that 25% of companies still spend no money on internet-related marketing.
John Owen, IPA digital marketing group chairman and planning director of Dare Digital, said: "Internet marketing's steady and consistent growth continues unabated. Clients from all sectors now consider it a staple part of their marketing mix and many continue to revise their online budgets upwards as they see further proof of the medium's effectiveness."
The Bellwether Report painted a rosy picture for the advertising industry in 2004. It found that more than 50% of advertisers are preparing to spend more money and claimed that the market is the most optimistic it has been since the dotcom boom.
Chris Williamson, author of the report, said: "Marketing and advertising executives are entering 2004 in the most optimistic mood since the height of the dotcom boom."
He said that growth was being driven by rising profits rather than simply because of business confidence.
Sir Martin Sorrell, chief executive of WPP Group, said that the trends were not surprising given a 25% rise in US corporate earnings in the last quarter of 2003.
"Corporate profitability is improving but up to now mainly as a result of cost reductions. Perhaps now the focus is switching to top-line growth and advertising and marketing services spending is rising as a result," he said.
The Bellwether Report is published quarterly by the IPA, based on research by NTC Research.
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