Marketing budgets hit three-year high

Published on Tuesday 17 April 2007 11:54

ADVERTISING budgets in Britain were pushed to their highest level in three years during the first quarter of 2007, according to a new report.

And further growth is expected over the remainder of the year, the Bellwether Report by the Institute of Practitioners in Advertising (IPA) forecast.

According to the report, one in four companies reported an upward revision to their total current marketing budgets, which the authors said represented a "marked improvement" to budget cuts seen in 2005 and 2006.

Leading the improvement had been spending on online budgets, the IPA said.

"Surging corporate profits and above-trend economic growth has led to a further strengthening of marketing spend, with companies investing in additional marketing to support business expansion and product launches," report author Chris Williamson said.

Sir Martin Sorrell, chief executive of advertising giant WPP, said the report reflected what his firm had seen in Britain - a recovery against "admittedly weak comparables" led by expansion in direct internet and interactive media.

Internet marketing budgets outperformed all other sectors, with a net balance of 19 per cent of companies reporting an increase.