DM and digital 'hold their own'

Direct and digital spend is holding up in a period of budget cuts, according to the latest IPA/BDO Bellwether report, which shows further evidence of the stampede towards measureable and accountable marketing techniques.
DM spend did witness a slight downward revision (1.8 per cent) in the first quarter of this year – for the first time in 18 months – but both Internet (up 9.3 per cent) and search (up 4.3 per cent) saw rises.
Overall, marketing budgets were revised down in Q1 for a second consecutive quarter in response to public sector spending cuts and rapidly rising cost pressures.
With 25 per cent of companies reporting a downward revision against 20 per cent that reported an increase, the resultant net balance of -5.1 per cent was the second-lowest in five quarters (Q4 was the lowest at -5.4%).
Mike Dodds, Proximity London chief executive and a member of IPA Direct Marketing Group, said: “It’s disappointing to see a marginal reduction in direct marketing spend. It’s clearly being affected by a movement towards digital channels which are also highly personalised, targetable and cost effective.
“There are very few clients who do not have a online migration agenda these days so if anything I’m surprised that direct marketing spend hasn’t been more adversely affected. I put this down to the continued strength of the discipline and the fact that although clients are looking to cut back, they are also planning to be more targeted, relevant and creative in their use of direct marketing. That’s got to be good news for consumers and agencies alike.”