Magazine article Marketing

Media Budgets Suffer Worst Drop since 2001

Magazine article Marketing

Media Budgets Suffer Worst Drop since 2001

Article excerpt

Hopes of a media upturn in 2003 are evaporating rapidly, with the latest IPA Bellwether Report showing that media budgets suffered their steepest decline in the second quarter of this year since the third quarter of 2001.

Of the 200 UK companies in the survey, 29% revised their media budgets down in the second quarter, with only 14.5% saying they had increased them.

The overall downward revision in the second quarter was the worst for 21 months. Media budgets have now been cut for ten consecutive quarters.

However, the rate of decline had eased in the previous two quarters.

Advertisers blamed weak corporate profitability arising from poor sales, and a continuing movement of spend to below-the-line activities where smaller and more accountable campaigns offered greater flexibility.

Nevertheless, companies also cut their DM plans in the second quarter - the first downward revision since the third quarter of 2001 - with 19.7% of marketing directors saying they had reduced their DM spend, and 21.6% saying they had cut their sales promotion budget for 2003. …

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