MAY 17, 2006 – According to the latest Institute of Communications and Advertising (ICA) “Survey of Marketing Budgets”, conducted by NTC Research, based on information provided by a panel of 270 senior marketing executives in Canadian companies, marketing budgets nationwide were revised upward in the first quarter of 2006.
The news comes after 2005 saw the strongest growth in marketing expenditure since the survey began three years ago and spending is forecast to rise at an even faster rate in 2006.
“The overall increase that is being signaled for 2006/7 is the most buoyant picture of initial budget setting recorded by the Survey so far, which we began in 2003,” said Rupert Brendon, CEO of the ICA. “This survey has proven to be an excellent indicator of not only advertising industry health but business health in Canada overall.”
When setting new budgets for the 2006-2007 accounting year, 51% of companies reported that budgets have been set higher than actual spend in 2005-2006, outnumbering those that registered a decline by four-to-one, resulting in a net increase of 38%.
As in the US, Internet-related marketing continued to see notably stronger growth than other forms of marketing. The trend is clear: Internet marketing was expected to account for approximately 4% of total marketing spending, up from around 3% a year ago.
Sales promotion budgets also saw an increase, exceeded only by Internet marketing. Upward revisions to budgets were reported by 14% of companies while just 6% indicated downward revisions.
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