Internet sees biggest rise in marketing spend for Q1

Harwood, Susie
April 2004
New Media Age;4/22/2004, p12
Trade Publication
This article reports that the Internet allegedly continued to grow faster than all other categories of marketing expenditures during the first quarter of 2004, according to the latest Bellwether Report. One in three companies involved in the survey, published by the Institute of Practitioners in Advertising (IPA), reported an upward revision of online budgets, whereas only 2 percent reported a decline. In terms of revisions to budgets, such a trend represents the eight consecutive quarter that online marketing has outdone all other categories. The proportion of companies allocating in excess of 1 percent of their expenditures to the Internet rose to 42 percent in the first quarter. Similarly, the proportion allocating in excess of 5 percent rose to a survey of high of 19 percent. Despite such a situation, the proportion of marketing money spent on Web-related activities remains small, and that the number of companies not using online remains steady at around one in four. John Owen, chairman of the Digital Marketing Group of IPA, said that there is no sure sign of the effectiveness of the medium than the fact that clients are investing increasingly of their marketing budget in the medium.


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