Advertising’s share of communications budgets has fallen 9% in real terms during the current recession, according to a new survey from Rhino Communications.
Below-the-line specialists have not been hit so cruelly, with design, print and direct marketing in particular increasing their shares of the comms budget by 5% each.
Of the disciplines perceived to be most critical to companies’ effectiveness over the next five years, advertising’s share has slipped from 40% in 1989 to 20% in 1991. The survey reveals that companies are also rationalising their roster of specialist agencies – on average down from seven to three.
The survey was conducted amongst the UK’s top 800 advertisers during April this year.
Only 5% of respondents said they were completely satisfied with the use of their communications budgets, with almost 40% saying that 15% of the budget is wasted because of poor targeting.
ALLOCATION BY INDIVIDUAL MARKET SECTORS FINCE IT SERVCS RETAIL MANUF ADVERTG
ADVERTG
’89
35
26
35
64
61
’91
20
4
16
25
30
PR
’89
8
4
3
2
4
’91
3
8
5
3
3
SALES
’89
6
6
2
10
20
PROMO
’91
7
2
35
33
29
DESIGN
’89
14
9
11
11
4
& PRINT
’91
31
12
14
17
12
D.MKTNG
’89
20
5
6
1
–
’91
31
7
14
–
3
TRAINNG
’89
3
24
16
1
2
’91
5
–
4
–
1
INTERNL
’89
3
2
5
–
1
COMMS
’91
2
1
2
1
2
EXHBTNS
’89
2
9
4
1
1
’91
–
2
5
–
7
7 ESTIMATED AVERAGE SPEND BY DISCIPLINE
1988
1990
%CHANGE
Advertising
39
30
-9
PR
4
7
3
Sales Promo
17
17
0
Design & Print
10
15
5
Direct Marktng
6
11
5
Training
9
2
-7
Internal Comms
3
1
-2
Exhibitions
3
2
-1
Other
11
15
4
Media Jobs
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