IPA reports fall in media marketing spend

UK spend on media and event-related marketing activity has fallen for the third consecutive quarter and at its sharpest rate, according to the Institute of Practitioners in Advertising’s latest Bellwether report.

The data does not, however, include strategic design and brand consultancy, or design and build disciplines such as interiors, Web design and product design.

This latest decline in marketing spend appears to have been precipitated by the ‘steep decline’ in traditional advertising spend (down 12 per cent on last quarter), which has long been threatened by structural changes in the marketing sector, such as the growth of online activity.

Expenditure on Internet marketing (calculated as Internet advertising and search spend by the report) rose by 6.2 per cent overall, though its rate of growth was not as high as the 20 per cent levels reported for the past three quarters.

The survey of 250 marketing decision makers finds marketing budgets have fallen for broadcast, print and events-related media. Sales promotion and direct marketing were down for their second year in a row, while PR and live events fell back after ‘sluggish growth in 2007’.

But while client spend on tactical and media-related communications appears to be falling at an increasing rate, the data does not include spend on strategic services such as brand strategy, design consultancy or marketing consultancy.

Expenditure on retail design, interiors, graphics, branding, packaging and product design are not included in the IPA’s ‘all other marketing’ category.

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