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Bellwether predicts gloomy forecast

Bellwether predicts gloomy forecast

Advertisers have slashed their budgets more in the third quarter of 2008 then any time in nearly a decade according to the IPA’s latest Bellwether report.

The report, first launched nine years ago, found that even internet advertising budgets-traditionally a strong performer in recent years, has come under pressure during the recent economic crisis.

The Bellweather report found UK advertising spend has shrunk for the fourth quarter in a row, pointing to “points to a marked deterioration in business conditions since the summer”

The report said budgets for internet ads remained steady in Q3 2008, the lowest growth rate in seven years, compared with “the robust growth seen in previous quarters.”

TV, radio and press advertising have been the hardest hit. Companies blamed cutting budgets to lower-than-expected sales and profits - reflecting weaker consumer and corporate demand - as well as growing fears over the economy.

Over a third of UK companies reduced ad spend in the third quarter, compared with only 12% who reported an upward revision of marketing budget.

IPA president Moray MacLennan said, "I doubt these gloomy results will come as a surprise to anyone.

"In light of current headlines, the biggest surprise may well be that 12% of companies' budgets were revised upwards."

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