Marketing spend up even as sentiment takes a hit

BUSINESS buoyancy has descended to a recent low as marketing executives admit financial prospects for their companies have deteriorated for the first time since early 2009, according to the IPA Bellwether report out today.

Business optimism plunged 45 per cent in the fourth quarter of 2011, down from the 23 per cent dip seen in the third quarter.

However, the report showed that companies are budgeting more for marketing in a bid to protect their market share from rivals, with spending on more traditional marketing means neglected in favour of internet advertising, which rose the most at 13.4 per cent.

Despite bleak economic confidence, businesses are increasing marketing budgets for 2012, thought to be due to events such as the London Olympics.