Nearly one-third of UK advertisers plan to reduce their ad budgets next year, even though most think the British economy will avoid recession, according to the Media Audits 2001 Advertiser Survey.
The report, based on responses from fifty major advertisers accounting for £700 million of adspend in all sectors, found 29% will cut their adspend in the next twelve months, while only 23% believed there would be a recession in the UK in the same period. However, it should be added that the survey was conducted before the September 11 attacks.
Other findings include:
* 52% think internet spend will fall faster than other media.
* 62% think there is too little transparency or accountability in web advertising. Only 9% said their online spend was used “very effectively”.
* 56% pay their media agency on a commission basis, 35% by fee and 8% through a combination of the two.
* Only 11% have experimented with advertising via interactive TV. Some 58% have not even been briefed by their media shop on the medium.
* 30% found new, supposedly ad-unfriendly, technologies such as TiVo “irrelevant” to their communications strategy.
* 26% plan to centralise European media duties within the next five years, 10% in the next two years. Around 23% say they would never centralise their media business.
News source: CampaignLive (UK)