Ad budgets 'recovering'

Marketing and advertising budget cuts are slowing, according to the latest figures from the Institute of Practitioners in Advertising (IPA).

The organisation's Bellwether Report for the fourth quarter of 2009 revealed that the slowdown in ad spend reached its lowest point since the first three months of 2008.

In addition, the data revealed that companies are more confident about their business prospects now than at any time in the last five years.

The figures indicate a gradual recovery returning to the advertising and marketing industry, particularly in the direct and digital marketing sectors.

Andy Viner, head of media at BDO LLP, said: 'After nine consecutive quarters of reduced marketing spend, it appears that the rate of decline is at its slowest in nearly two years.'

He added: 'There are a number of indicators to demonstrate that confidence is returning, with companies being upbeat about their own sectors and their corporate performance.'