LONDON (Reuters) - A key British marketing survey cut its forecast for 2015 advertising spend on Thursday as heightened concerns about the state of the global economy prompted companies to rein in spending.
The IPA Bellwether report said marketing budgets had been revised up in the third quarter of 2015 but to the weakest rate of growth since 2013. Marketing executives were also less optimistic about the financial prospects for their industry.
As a result the IPA cut its forecast for adspend growth in 2015 to 3.7 percent from the 4.2 percent forecast it gave three months ago. The amount spent on advertising often correlates to wider economic growth.
The survey, which is based on the responses of around 300 British-based companies, said the reasons given for the lower spending levels were a fall in confidence about the global economy and signs of a slowdown in some British economic sectors.
Paul Smith, a senior economist at Markit and author of the report, said that although the deterioration looked dramatic, the slowdown had been on the cards.
“As noted in the previous survey, confidence in the financial and economic outlook was already on the wane,” he said in a statement.
“Since then, UK growth has softened, while concerns over the outlook in emerging markets and the wider global economy have increased.”
Of the different advertising categories the best performing was the Internet.
Reporting by Kate Holton, editing by David Evans