TORONTO: Growth in marketing spend increased in Q1 2007, according to the quarterly survey of Canadian marketing budgets by the nation's Institute of Communications and Advertising.
The upsurge represents the second-strongest increase seen since the survey began in mid-2003.
Based on data supplied by a panel of 270 senior Canadian marketing executives, one-in-five companies reported an increase to existing 2007 budgets, whereas just 5% reported a decline.
Moreover, in the 2006-07 accounting year, increased spend was reported by 40% of companies versus just 17% reporting a decline.
Says Jani Yates, ICA acting president: "The survey indicates that marketing spend is rising strongly as budgets are boosted by buoyant domestic sales, while at the same time exporters are also stepping up their sales promotions and other activities to boost competitiveness - especially in the US market.
"The survey therefore paints an encouraging outlook for 2007, with rising marketing spend helping to spur further sales growth, which should in turn drive faster economic growth."
The ICA/Canada Post Survey of Marketing Budgets is researched and published by UK-headquartered NTC Economics. It uses the same methodology as the British Institute of Practitioners in Advertising's Bellwether Report.
For full details of the ICA/Canada Post Survey, click here.
Data sourced from Institute of Communications and Advertising (Canada); additional content by WARC staff