Turmoil in financial markets may effect U.K. marketing spend

Spend on internet marketing in the U.K. has risen to more than 6 percent of total marketing spend, its highest proportion to date. Over 40 percent of businesses allocated at least 5 percent of their total marketing spend to online activity, said the report.

Growth over Q3 was the strongest this year and 31 percent of businesses raised their online budgets and just 7 percent cut back.

However, Chris Williamson, author of the report, feels “it is likely” that the industry has reached a peak.

“The Q3 Bellwether report shows that the worse is not necessarily over for the UK adverting industry," he said. "The downward revision to Q3 budgets contrasts with upward revisions during the first half of the year. However, some comfort can be taken from the fact that Q3 appears to be a popular time to adjust budgets and the latest cuts were less steep than seen in the third quarters of previous two years.”

Some feel that Q4 results would reflect any effects the U.K.’s financial turmoil has had on business.

Tags: Bellwether, marketing budget, online budget, U.K.