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Ad budgets in the UK are growing at their fastest rate for seven years, helped by increased spending on internet advertising, according to a new report.

The Bellwether Report from the Institute of Practitioners in Advertising (IPA) predicts stronger growth than in 2006, thanks partly to internet ad spending. Web spending accounts for 6% of all marketing budgets, compared with just 2% in 2000.

The IPA says UK marketing expenditure is worth between £30bn and 35bn, with the internet accounting for £2bn. 

Twenty four percent of companies reported that their marketing budgets had increased, while 15% had reduced marketing outlay. Almost twenty two percent of companies said they had increased their online marketing budgets over the past year.

Sir Martin Sorrell of WPP said that the UK lagged behind other countries in this area:

"Internet, direct and public relations remain the fastest growth categories along with media investment management. All very encouraging in a UK context, but not so in comparison to the other geographic markets. The UK remains the laggard, with growth in China, India and Russia leading the way.”

Further reading:
WPP to buy 24/7 Real Media
UK web users attract most ad spend - IAB

Graham Charlton

Published 17 July, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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