Expenditure on direct marketing campaigns are decreasing, according to the latest Institute of Practitioners in Advertising (IPA) Bellwether survey.

The report’s figures reveal that direct marketing budgets were down by 5.5 per cent during the third quarter of this year, although the rate of direct marketing ad spend is slowing.

Financial services, the industrial sector, IT and computing saw the biggest cuts in budgets, while the retail, travel and entertainment sectors saw increases in ad spend.

The survey also found that internet advertising budgets are on the rise, with search increasing by 5.4 per cent and internet advertising rising by 4.5 per cent.

Furthermore, optimism is growing in the buying side of the marketing industry, with confidence levels at the highest since the beginning of 2006.

Rory Sutherland, president of the IPA, said: “Although marketing spend is still falling, this latest Bellwether report is an encouraging sign that budget cutting is slowing.”

A recent poll from Amplify Research found that 57 per cent of respondents believe their firms will still suffer from the effect of the recession over the next nine months, which suggests marketers may still be cautious about the economic outlook.

Posted by Julie Knight, Managing Director – General Marketing, Industry News

Related Topics: General Marketing