July saw the release of the IPA’s Q2 2008 Bellwether Report, with the third consecutive quarter of cuts and to the greatest extent since 2001.
All sectors within marketing have suffered cuts, with the exception of the internet. However, even this market was not immune to the downturn with budgets only increasing by 6%, the smallest upward revision since 2002 (see
Largest Marketing Budgets Cuts Since 2001).
Meanwhile, research from the Nielsen Company found that global advertising spend grew just over 4% in the first quarter of the year (see Global Adspend Grew Just Over 4% In Q1).
The advertising market in Europe remained flat over the first quarter of 2008, said Nielsen, with television, which accounts for almost 50% of total European advertising spend, the only media type showing positive growth (2.2%).
Magna’s latest global ad forecast predicted that worldwide advertising spending will rise 4.4% this year, with the UK forecast to see 3% growth (see Global Adspend To Grow 4.4% This Year).
It added that adspend in the US will rise 2%, with growth in most developed industrialised countries expected to be quite modest.
Outsell, Inc, however, forecast that spending on total US advertising and marketing will grow 3.9% in 2008 to reach $412.4 billion, with the advertising portion reaching $249.1 billion (see US Aspend To Grow 3.9% In 2008).
IDC forecast that worldwide spending on internet advertising will total $65.2 billion in 2008, representing nearly 10% of all ad spending across all media (see Global Online Adspend To Total $65.2bn In 2008).
IDC projects 15-20% annual growth throughout the forecast period, with this share reaching 13.6% by 2011 as internet ad spending grows to $106.6 billion worldwide.
Investment bank Cowen lowered its estimate for US online ad market growth in July, to 16% year on year from its previous projection of 19% (see US Online Ad Market To Grow 16%).
Cowen forecast that the US search market will grow 22%, with Google predicted to account for 45% of the incremental growth in the US online ad market in 2008, compared with 12% for Yahoo and 4% for Microsoft.
A study from the Internet Advertising Bureau found that online advertising for retail brands delivers the biggest effect in the media mix, driving 40% of brand engagement, compared with press at 31% and TV at 19% (see Online Ads Drive User Engagement).
Towards the end of the month, BT released its 21st Century Life Index, showing that the proportion of internet users in Britain spending more than five hours per week online has more than doubled in the past 10 years, from 25% in 1998 to 58% in 2008 (see Britons Spending More Time Online).
It also found that social networking online is also increasingly becoming the norm, with 25% of internet users interacting with these sites in 2008.
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