The IPA Bellwether Report has identified economic and political uncertainty as some of the factors.
According to the report, the net balance of marketers that increased their marketing spend has gone from 8.7% in Q1 to 0.0% in Q2. The 20% of marketers that did report greater marketing spends were offset by another 20% who cut expenditure. The remaining 60% made no change to their marketing budget when compared to Q1.
Growth in internet advertising budgets slowed with a net balance of 11.5% of firms reporting budget growth in Q2. This was 17.2% in Q1. Economic and political uncertainties saw marketers tightening their sales promotion budgets from -3.7% to -7.1%, a successive downward revision.
The "other" advertising category also saw a drop with net balance falling from -5.4% to -12.8%. But direct marketing reached its lowest level in ten years as it went from -3.5% to -9.0%.
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