UK firms increased their online ad spend by only 6% in Q1 2008, compared to the 21% rise in the same period last year, according to the Institute of Practitioners in Advertising (IPA).
Of 250 companies surveyed, only 19% increased their online ad budgets for Q2, compared to 27% in Q1. A further 12% report a downward revision during Q2, in contrast to 5% in the previous three months.
IPA chairman Moray MacLennan blames the falling figures on the country’s current economic climate, warning that it will continue to slowdown in coming months. To combat the situation MacLennan recommends that companies focus on cost control and strive for more innovative and original ads.