Marketers cut media spend

by Media Week, Media Week 15-Jul-08

Marketers are cutting their media budgets for the third quarter in a row and to the greatest extent since the 9/11 terrorist attacks, according to the latest IPA Bellwether Report.

The report, which examines how marketing budgets are revised up or down
since being set at the start of the year, found that only 11% of firms
increased their media budgets in Q2, while 24% cut them.

All sectors of marketing saw budgets cut, with the exception of the

internet, which had its smallest upward revision since 2002. Of
respondents, 19% reported that their internet budgets were revised up in
Q2, while 12% reported a decline.

Main media budgets saw the sharpest downgrades, particularly in TV,
press, outdoor and cinema, with budgets dropping at the fastest rate
since Q1 2006. The report also forecasts further cuts later in the
year.

Chris Williamson, the report's author, said rising costs and
weaker-than-expected sales are raising "the possibility that marketing
spend could fall this year for the first time since the survey began in
2000".

Colin Grimshaw, page 21.