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Report: Marketing budgets to increase in 2007

The Institute of Communications and Advertising and Canada Post have released the results of their latest quarterly survey of marketing budgets in Canada. The survey, conducted by NTC Research, draws on information from a panel of 270 senior marketing executives. According to the results, current marketing budgets were revised up in the final quarter of 2006, with 22% of respondents reporting an increase and nine percent reporting a reduction. Main media advertising and Internet advertising received the largest gains. The report also indicates that budgets for the 2007-08 accounting year have been set higher than those for 2006-07. Half of the participating companies plan an increase, while 17% plan a decrease. The greatest spending growth for the next year is expected to take place in the “All Other” category, which includes Internet marketing. As a result, spending on main media advertising, direct mail, sponsorships and public relations may slow. “Marketing executives reported a further boost to current budgets in the final quarter of last year, citing good sales and profits as well as strong competition as factors driving the increase,” said Jani Yates, acting president of the institute. “The data therefore suggest that business conditions and economic growth remained solid in Q4. Looking ahead, the strength of the budget increases signalled for 2007 suggests that companies are clearly optimistic about the coming year and have the finances to support this confidence with a further increase in marketing spend.”

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