UK clients surveyed by the IPA’s quarterly Bellwether report have started cutting budgets again, reversing the optimism reflected in the previous report.
In the quarter to June 20 per cent of the 300 marketing execs surveyed said they were cutting back against 15 per cent who said they planned to spend more.
“The downward revision to marketing budgets in the second quarter is disappointing as it fails to build on the return to growth seen earlier in the year and highlights the fragility of the UK economic recovery,” according to Bellwether author Chris Williamson of Markit.
Television and internet advertising are ahead of the game and doing well but the result suggests that other media such as press and radio are struggling and likely to continue to do so through the rest of 2010.
This reverse is hardly surprising as the last quarter has seen turmoil in the Eurozone hit markets worldwide and, in the UK, the threats of fearsome spending cuts and tax rises by the coalition government grab the headlines.
So far as agencies and media owners are concerned it signals a further instalment in the battle of attrition with advertisers who will be more determined than ever to achieve the same promotional exposure for less money.