ICA releases new marketing budget survey results
By Adnews Staff
According to the Institute of Communications and Advertising, marketing budgets increased in the second quarter of 2005 as a result of rising profits and "growing confidence in the economic outlook." Budget increases were most common in consumer-oriented sectors such as durables, packaged goods, travel, entertainment and retail. Marketing budgets also grew in the public sector, media and financial services sectors. "Of particular note is that the improved outlook for marketing has reflected a marked increase in budgets for media adspend which saw the strongest upturn in this survey's two-year history," said Rupert Brendon, president of the institute. "Companies had been reporting a shift in spend away from main media advertising toward direct marketing in past surveys, largely due to uncertain economic times, but this Q2 survey indicates a reversal as business conditions continue to improve. Consequently, direct marketing budgets were revised down for the first time in two years." Sales promotions budgets and Internet spending continue to show the most growth, according to the survey. The results also suggest reduced spending on public relations, market research, corporate communications and sponsorships. The survey, conducted by NTC Research, is based on quarterly information provided by 270 senior marketing executives in Canadian companies.