Bellwether: SP spend up in Q4

Promotions & Incentives 07-Feb-08, 10:10

LONDON - The sales promotion was one of the few marketing disciplines to see a rise in spend in the fourth quarter of 2007, according to the Bellwether Report.

The survey, which monitors marketing budgets, revealed budgets were down overall due to disappointing sales revenues, falling profits and concerns about the economy.

Only 15 per cent of companies reported an increase in budgets in Q4, while 19 per cent said they would spend less.

According to the Institute of Practitioners in Advertising (IPA), which commissioned the report, the rise in sales promotion budgets was a result of companies seeking to "boost flagging sales with discounting".

ISP chief executive Clive Mishon said the results showed sales promotion was well placed to prosper in the event of a downturn in the UK economy.

However, Mishon disputed the IPA's belief that the rise in sales promotion was down solely to brands cutting prices to boost sales. He said: "If you walk around the supermarkets you'll see sales promotion is not exclusively about BOGOFs."

The IPA said client budget forecasts for 2008 remained optimistic.