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About 20% firms cut ad budgets in Q2: Bellwether report

IPA figures for second quarter reveal "positive sentiment" at annual low

About 20 per cent of UK companies cut down on their advertising budgets during the second quarter compared to 15 per cent raising their budgets, according to the latest Bellwether report, a quarterly survey from the Institute of Practitioners in Advertising (IPA) and accounting firm BDO.

The report found that the total marketing spend fell by 4.6 per cent during the quarter, compared to a 4.5 per cent rise in the first quarter of this year.

The IPA, which surveyed about 300 marketing professionals in the UK, said while sales promotion budgets fell, direct marketing and internet budgets increased during the period.

The report warned that "positive sentiment" across the industry had dropped to its lowest point in a year.

Rory Sutherland, president of the IPA and vice-chairman of Ogilvy Group UK, expressed confidence that the marketing spend is still set to increase. However, the report is likely to raise concerns over the health of the broader economy.