Marketing Expenditure Trends

European Business Forum, Autumn 2003 | Go to article overview

Marketing Expenditure Trends


With the continued global slowdown in advertising, the question of how much companies are prepared to spend on advertising and marketing and whether there is likely to be any significant upturn in spending in 2003 is an important one. A research project directed by Patrick Barwise of London Business School suggests that across the board, global marketing expenditure is likely to remain flat, but also that there are significant variations between countries; expenditure is likely to decline in Germany and Japan, but growth is expected in the USA, UK and France.

The research programme, carried out in winter 2002/3 involved interviews with the marketing directors of over 700 companies (240 based in the US, 122 based in Japan, and 365 based in Germany, France or the UK). Companies were asked for information on both actual spending and projected spending in future marketing plans. Figures were provided for total spending and then broken down into more detail to get estimates of spending on activities such as media advertising, direct mail, sales promotion, public relations and interactive marketing.

Perhaps surprisingly, the highest growth is expected to be in the UK, with increases of as much as nine per cent a possibility in 2003. The US market may grow by five-six per cent, and four-five per cent is forecast for France. Marketing expenditure in Germany, on the other hand, may fall by three-four per cent. …

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