Internet ad spend sees smallest increase since 2002
Internet advertising recorded its smallest increase in advertising spend since 2002, according to the IPA's Q2 Bellwether Report.
The report recorded a 6 per cent rise for internet ad budgets and found 19 per cent of internet companies revised budgets up.
This is the smallest upward revision for internet spend since 2002. At the same time, 12 per cent of internet budgets were revised down, an increase from 5 per cent in Q1.
Matt Simpson, head of digital at OMD and chairman of IPA digital media, said the sector continued to see growth but that was below industry forecasts. "Despite internet growth being more modest than in recent quarters, marketers are seeing the opportunity for the internet to drive their business."
According to the latest quarterly Bellwether Report overall marketing budgets were slashed by 12 per cent - the fastest rate since 9/11. Of the respondents 27 per cent reported a decrease in marketing budgets with only 15 per cent reporting an increase.
The hardest hit area was traditional media. TV, press, outdoor and radio reported a net decline of 13 per cent with 'all other marketing' such as PR and events slumping by 11 per cent.
Elsewhere direct marketing budgets were revised down to the greatest extent in survey history, showing the longest ever stretch of cuts because of the rise of email marketing.
The IPA report, the third consecutive report to have its budgets revised downwards, reinforces the current 'credit crunch' climate gripping the UK and indeed the rest of the world.
The report refers to a "deteriorating outlook for spend in 2008" whereby at the start of the year 2008 budgets had originally been set higher than in 2007 on average.
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