Magazine article Marketing

IPA Reports Budget Rise after Two-Year Decline

Magazine article Marketing

IPA Reports Budget Rise after Two-Year Decline

Article excerpt

Marketing budgets crept upward in the first quarter of this year, the first increase in nearly two years, according to the Institute of Practitioners in Advertising's latest Bellwether report.

The news has prompted some commentators to conclude that the media slump may be coming to an end.

Following a year of stagnant spending, companies revised their total marketing budgets up on average by nearly 3% in Q1 2002 as advertisers shelled out more on direct marketing and online initiatives.

While budgets for direct marketing and internet advertising and sponsorship were revised upward by 5.6% and 0.8% respectively, those for ads, sales promotion and other marketing activities fell.

However, with 20.4% of companies reporting cuts to media adspend for a net drop of 2.8%, downward revisions to the category were the smallest since businesses began slashing media spend budgets in Q2 2000. This compares with cuts of 13.1% for Q4 2001 and 14.3% for Q3 2002.

Sales promotion budgets set in Q1 2002 took a net loss of 8.5%, while all other categories saw a net 1.8% drop.

Companies setting new marketing budgets in Q1 also reported an increase in their annual budgeted spend, with 41. …

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