The ICA’s Survey of Marketing Budgets showed that budgets were up in Q1, with 27% of companies increasing budgets while 21% decreased them. Media adspend saw a modest rise for the fourth consecutive quarter in Q1, with 22% of companies reporting an increase and 20% reporting a cut. Internet spending showed good growth, resulting in 4% of total marketing spending, up from 3% a year ago. Sales promotion and DM budgets were also up while ‘all other marketing’ current budgets were left unchanged. ‘The reason is crystal clear,’ says Theresa Treutler, SVP and media director at Toronto-based Doner Canada. ‘The Internet, sales promotion and DM are activities where the accountability and results are much easier to see immediately. The more traditional media can’t be measured as quickly or as easily.’ Treutler says the industry will continue to see growth in Internet spend. ‘As our expertise grows in applications of the Net, the spending will increase. And the funding will come from traditional media. We won’t see large growth in budgets.’
The survey also showed that 51% of companies are setting budgets higher for 2006/07 than their actual spend was in 2005/06, and that marketing spend grew more in 2005 than at any time since the survey began in 2003. Conducted by NTC research, the survey is based on quarterly info provided by 270 senior marketing execs in Canadian.
