Drop in UK ad spend causes concern

15 July 2010

Fears of a ‘double dip’ recession for the UK ad industry have intensified after the Bellwether report recorded a return to budget cuts.

The Q2 report from national body the Institute of Practitioners in Advertising, found that 20% of companies cut ad budgets between April and the beginning of July compared with only 15% that increased them. These results were typified by a feeling of negativity regarding company financial prospects for 25% of respondents. Meanwhile positive sentiment hit its “lowest for a year”.

Sales promotions were among the hardest hit registering the third fastest reductions in the survey’s history, while internet growth, which has been a strong performer for a long time, saw growth slow. Despite the obvious boost brought about by the World Cup, traditional channels still saw slight reductions in allocated budgets for the second quarter.

The results mark a stark change in attitude from Bellwether’s first quarter figures, which showed the first increase in marketing budgets for more than two years. 

Josh Colley, London