The ‘Q4 ICA Survey Of Marketing Budgets,’ conducted by NTC Research and based on quarterly information provided by a panel of 270 senior marketing executives drawn from Canada’s top 1,000 corporations, has concluded that total marketing expenditures showed continued growth to the end of 2004. According to the analysis, the main reasons for the increasing numbers were improved business confidence and strong sales numbers to end the year. NTC also notes that the latest rise in budgets was the smallest recorded increase in the survey’s one-and-a-half year history.
The survey continues to point out that of the companies that have set their budgets for the upcoming fiscal year, which amounts to approximately two-thirds of the survey panel, over a third are planning to increase their actual spend in 2005. NTC predicts that these numbers will lead to ‘robust growth’ of expenditures in the industry in the coming year.
In NTS’ breakdown of the numbers, media advertising accounted for the largest share of total marketing spend (approx. 39%), though Q4 did not see budget growth for media budgets. This was the only category not to record upward revision, leading to speculation that there was some loss of share. Another possibility for the limited growth, according to NTS, is the diversion of spends from main media towards sales promotion (around 17% of total spend) and direct marketing (about 19% of total spend) which are popular due to lower costs and greater accountability. The Internet category touted the strongest growth in Q4 coming in at 3.5% of total spend. Media ad spend is expected to rise in 2005, outstripping other marketing areas.
