The tough market conditions affecting UK business over the last year have hit advertising and marketing budgets more than other areas of expenditure, according to a new survey from Continental Research.
Over two-thirds of companies have made some kind of spending cuts, ranging from research and development to building and refurbishment. The remainder said that they had made no cut-backs during the year, as shown.
“Large companies have concentrated their cutbacks on outsourcing and salaries and wages, suggesting a reduction in headcount, or fewer bonuses being paid. Small businesses meanwhile are more likely to be cutting spending on advertising/marketing and R&D,” says Colin Shaddick, director at Continental Research.
Areas of reduced spending by size of company | ||||
Company size | ||||
Overall | Small | Medium | Large | |
Advertising and marketing | 38% | 39% | 36% | 27% |
Outsourcing and contractors | 28% | 29% | 25% | 30% |
Research and development | 27% | 31% | 15% | 14% |
Travel | 25% | 26% | 19% | 17% |
Building and refurbishment | 23% | 22% | 26% | 23% |
Training and conferences | 21% | 22% | 20% | 15% |
IT and Telecoms | 19% | 18% | 22% | 17% |
Salaries and wages | 18% | 17% | 23% | 26% |
Any of these | 68% | 69% | 66% | 58% |
None of these | 32% | 31% | 34% | 42% |
Source: Continental Research, December 2002 |