Newly elected IPA Direct Marketing Group chairman and chief executive of LIDA Mel Cruickshank welcomed the findings, claiming it was a positive sign to see 2011 budgets up, particularly in the areas of direct marketing and Internet spend.
Cruickshank said this shows a move towards more measurability and return on investment with overall marketing budgets.
The IPA/BDO study found that 22 per cent of brand owners revised their marketing budget down in the fourth quarter, while only 17 per cent reported a rise – the resultant net balance of -5.4 per cent fell to a one-year low.
Business confidence has also dampened, with marketing executives signalling that the financial prospects for their own companies dipped to the lowest in six quarters, and for the industries in which they operate deteriorating for the first time since Q2 2009.
IPA Media Futures Group chairman and chief Executive of OMD Group Steve Williams said: “The report observes a downward revision in budgets, simply reflecting the incredibly dynamic (positive and less so) year that 2010 was. Interesting to note that direct response based media (DM/Internet) still look, understandably, very positive. Looking to 2011, signs look good for the market continuing to pull itself away from financial crisis of 2008/9.”
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