Monday 14 April 2008

Direct marketing sees 8-year record fall

Direct marketing spend experienced its largest fall for eight years in the first three months of the year, according to a recent Bellwether Report.

A study, published by the Institute of Practitioners in Advertising, has revealed that budgets for events, PR, market research and sales promotion also saw their biggest cuts for two years, while overall budgets decrease for a second consecutive quarter.

Over the period, between January and March, 19 per cent companies reported that their marketing budgets increased while 21 per cent said that they had decreased.

Jim Marshall, the chairman of the Institute of Practitioners in Advertising Media Futures Group, told the Media Guardian that the "sharp decline in direct marketing in part reflects a shift in spend to the internet, which is increasingly regarded as a powerful direct marketing vehicle".

He continued: "Overall, although the report reflects reduced levels of ad expenditure, there is still an appetite amongst clients to invest in marketing activity and events this year such as the Olympics which well kick-start activity."

Category: Marketing campaigns

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