UK advertising budgets slashed again-IPA

LONDON, Oct 13 (Reuters) - British marketing budgets were revised down in the third quarter, a survey showed, to the greatest extent in the report's nine-year history.

The Bellwether Report, by the Institute of Practitioners in Advertising (IPA), said the cut was the fourth successive quarterly reduction in advertising spend and reflected a marked deterioration in business conditions.

It said only 12 percent of companies reported an upward revision to budgets, while 35 percent reported a downward revision.

The sectors hardest hit were budgets for main media advertising and categories such as public relations, events sponsorship and market research, which all saw record downward revisions, the report said.

Internet advertising spend, which has grown rapidly in recent years, held steady which the IPA said was the weakest growth for seven years.

Chris Williamson, the author of the report, said: "The slump in the Bellwether marketing budget and financial prospects data indicate a severe worsening of business confidence and the rising impact of the credit crunch on the real economy.

"These data are consistent with the economy contracting in Q3 and raise the possibility of the UK falling into recession."

A report by Deloitte, also out on Monday, showed that optimism among Britain's leading finance directors had deteriorated rapidly. The report said more than half of the directors are not expecting a recovery in credit conditions until 2010 or later.

(Reporting by Kate Holton; Editing by Sharon Lindores)