Advertisers may need insolvency advice

Advertising and marketing firms could be set to follow businesses in other sectors in seeking specialist insolvency advice as the full impact of the economic downturn finally starts to hit home.

According to the latest study of the sector, carried out jointly by the Institute of Practitioners in Advertising and Bellwether, the amount of money being spent by UK marketing professionals was up slightly over the three months to the end of September.

However, the research also revealed that doubts are creeping into the industry.

Of those marketers questioned for their views on the state of the UK economy, 40 per cent said that they feared the situation is likely to get worse in the months ahead.

In comparison, just 16 per cent of those polled were found to be optimistic about the immediate future of the UK economy, representing the lowest level of confidence since the first quarter of 2009.

Indeed, according to IPA president Nicola Mendelsohn, that marketers are raising their spending levels actually supports the idea that a feeling of doom and gloom is increasingly enveloping the sector.

"That we are seeing a further decline in confidence overall continues to reflect the uncertain financial climate that businesses are operating in," she said.

"This rise in spend demonstrates that many companies are trying to buck the downward trend."

At the same time, a separate study carried out by Barclays could suggest that Welsh marketing firms could be among the most likely to need specialist insolvency advice in the months ahead as they continue to be hit hard by the recession.

According to the bank's latest research, the contribution of small businesses to the Welsh economy has slumped over the past few months, particularly when compared to the value of smaller firms to the English and Scottish economies.