Association of online publishers Helping media owners build better digital business

Online spend increases amidst media budget cuts

20.9 per cent of companies have increased their online spending in a climate where marketing budgets are being revised down and media spend in general is being cut.

The latest Bellwether report published by NTC Research for the Institute of Practitioners in Advertising is considered by many in the industry as the leading analytical tool for tracking industry trends. This report delivers a more sombre message than that of the last quarter. Fewer companies have revised their budgets upwards and more are failing to make any changes to their budgets at all.

8.2 per cent of companies spent less than planned during the last quarter of 2005. Due to weak sales and meagre profit margins the industrial, retail, consumer goods, and media sectors are all being forced to cut costs.

The findings this quarter reinforce the trend that difficult market conditions are encouraging clients to up their online and direct marketing spend. But this is to the detriment of media outgoings.

Sir Martin Sorrell, group chief executive of WWP commented that while UK companies are battling a difficult market: “New-media activities…continue to show stronger growth.”

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