Advertising and sponsorship on the internet is being allocated higher budgets by a majority of UK marketers in the second quarter of 2002, according to an analysis of data released by the Institute Of Practitioners in Advertising (IPA) last week in its Bellwether Report (see Insight Analysis: Bellwether May Show Slowly Returning Confidence).
Revisions To Current Internet Budget | |||||||
% up | % same | % down | Net balance (+/- % points) | ||||
2001 | Q1 | 15.7 | 74.8 | 9.4 | 6.3 | ||
Q2 | 24.8 | 66.2 | 9.0 | 15.9 | |||
Q3 | 14.9 | 71.6 | 13.5 | 1.4 | |||
Q4 | 13.8 | 71.0 | 15.2 | -1.4 | |||
2002 | Q1 | 13.3 | 74.2 | 12.5 | 0.8 | ||
Q2 | 16.9 | 79.1 | 4.1 | 12.8 | |||
Source: IPA Bellwether, July 2002 |
No year on year growth in Net budgets Whilst Q2 may see more marketers increasing their budgets than decreasing them, the trend year on year shows little real budget allocation increase. The main increase when compared to Q2 2001 is actually in setting internet advertising and sponsorship budgets to zero, as shown.
The trends since Q1 2002 show that there was a peak in less than 0.1% of budgets being allocated to the internet in Q1 this year, with a corresponding fall in the percentage of marketers designating no budget to the web. This suggests a flirtation with internet marketing on a very small scale, which seems to have been reigned back in this quarter.
The 0.5-1% of budget band has slumped from just under 30% of marketers in Q1 2001, to only 10.2% in Q2 2002. Meanwhile, the 5-10% band has grown a little over the same period.
The trend data seem to indicate that there is little overall increase in the proportion of marketers’ budgets allocated to the internet, despite the headline Q2 finding that more are increasing their spend than decreasing it. On average, the internet accounts for slightly over 2% of total marketing spend.
Looking only at Q2 2002, the majority of marketers – 28.7% – are still budgeting for no spend on the Net whatsoever. The next largest category is the 1-5% budget allocation, into which 21.6% of marketers fall.
Percentage Of Marketing Budget Set For Internet Advertising Or Sponsorship | |||||||||||
Zero | <0.1% | 0.1-0.5% | 0.5-1% | 1-5% | 5-10% | 10-15% | 15-20% | >20% | Don’t know | ||
Proportion of companies | |||||||||||
2001 | Q1 | 30.4 | 14.3 | 9.9 | 29.8 | 8.1 | 0.6 | 1.2 | 3.1 | 2.5 | 0.0 |
Q2 | 22.2 | 18.4 | 13.9 | 8.9 | 20.3 | 7.6 | 3.2 | 2.5 | 3.2 | 0.0 | |
Q3 | 24.6 | 17.5 | 8.2 | 11.7 | 18.7 | 9.9 | 2.9 | 1.8 | 2.3 | 2.3 | |
Q4 | 25.5 | 14.9 | 13.7 | 6.2 | 23.6 | 9.9 | 0.6 | 1.2 | 3.1 | 1.2 | |
2002 | Q1 | 15.2 | 26.5 | 13.9 | 8.6 | 19.9 | 8.6 | 2.6 | 1.3 | 1.3 | 2.0 |
Q2 | 28.7 | 13.8 | 13.2 | 10.2 | 21.6 | 7.2 | 1.8 | 0.6 | 3.0 | 0.0 | |
Year On Year Change Q2 2002 | 6.5 | -4.6 | -0.7 | 1.3 | 1.3 | -0.4 | -1.4 | -1.9 | -0.2 | 0.0 | |
Source: IPA Bellwether, July 2002 |