According to the Institute of Practitioners in Advertising's quarterly Bellwether Report, it is the second quarter running where marketing budgets have been revised upwards.
Overall, 49% of companies reported that marketing spend was due to rise for the 2004/2005 financial year, a figure not seen by the Bellwether Report since 2000.
Stephen Woodford, IPA president and chief executive of WCRS, said: "The current picture reflects the most positive climate across all sectors since the fourth quarter of 1999."
It is also the first tine since 2000 where media adspend was revised upwards, with some 33.3% of companies surveyed saying that the advertising budget for the year was higher than last year, and 16.7% saying that it was lower.
However, the survey showed once again that it is marketing disciplines rather than traditional adspend where the strongest performance can be seen.
Internet marketing budgets rose by more than any other for the quarter, followed by direct marketing. One in three companies surveyed for the report said that they were increasing internet marketing budgets for the quarter, while only 2% said they would decrease budgets.
For direct marketing, nearly 25% of companies said they would increase spend compared with 9% saying that planned to decrease their DM budgets for the quarter.
Sir Martin Sorrell, chief executive of the WPP Group, said: "The IPA
Bellwether Report demonstrates yet again the recovery in advertising and marketing services spending in the UK. This follows the trend we have seen elsewhere, but in a milder form.
"There are also indications that advertising and marketing services spending will stabilize or grow as a proportion of GNP in 2004. In addition, it appears that marketing services spending in direct internet and other more measurable areas is being favoured over classic media spending."
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