According to the report of Institute of Practitioners in Advertising, the reduction in the gap of expenditure and economic development will result in increasing the gross domestic product to an extent. The GDP has been stagnant since nine months in UK.
According to IPA President, Nicola Mendelsohn, the market has witnessed a fall in the sales of the products; a small increase in the spending rate is an indication of the changing trend in the economy of the nation. As per Ms. Mendelsohn, "That we are seeing a further decline in confidence overall continues to reflect the uncertain financial climate that businesses are operating in”.
The report reveals that maximum number of marketing managers believe that the ad industry was in poor state in present quarter, in comparison to the business it did in last three quarters.
The companies of Britain have increased advertisement expenditure, which they had been avoiding from past 3 quarters. The move has been initiated in order to maintain their position in the market. The review by IPA consists of a study conducted on around 300 organizations of the Britain while 21 % of the companies took the way of making expenditures in advertisement as a strategy of marketing; on the other hand, 17% of the companies avoided such expenditure for the time being.
Around 0.5% of the business organizations revealed that they would only access the conventional sources of advertisements like television and press media. Many drifted to promote their business online.