The latest 'Bellwether Report' by the Institute of Practitioners in
Advertising finds that UK marketing budgets are falling at a record rate, with
more gloom ahead.

Just 7 percent of companies surveyed reported an increase in marketing
spend in the fourth quarter of 2008 compared to 49 percent reporting a
decrease. According to the IPA, this was a response to business confidence
deteriorating at a record pace.

If advertising is a bellwether for the direction of the overall economy,
then the latest Bellwether Report by the UK's Institute of Practitioners in
Advertising is an alarming signal that shows spending on marketing dropping
off at an unprecedented rate.

Hamish Pringle, IPA Director General saying:
"What we've found from this bellwether was unfortunately the worst
situation we've ever seen."

IPA Director General Hamish Pringle says not only did Q4 marketing
budgets decline at their fastest rate since this survey started in 2000, the
outlook for 2009 is even tougher.

Hamish Pringle, IPA Director General saying:
"This is the first time we have seen in the survey's history that
new budget setting for the new year to come is worse than the previous year so
we are in uncharted waters."

Though traditional media saw the steepest decline in marketing spend
resulting from a dropoff in business confidence, the IPA's latest figures show
that even internet advertising is being hit.

Hamish Pringle, IPA Director General saying:
"I think it is pretty serious, the state we're in right now in the
advertising business. I think there's a general retrenchment and budgets will
be lower this year. Having said that, this is the third recession that I've
been through and we do know and increasingly other people know that those
brands that maintain their relative share of voice through tough times do
succeed during those tough times and they come back quicker
afterwards."

In the past, the IPA says that Bellwether data and gross domestic product
have moved closely in line, suggesting GDP is likely to have contracted for a
second consecutive quarter in the fourth quarter of 2008, with the rate of
decline gathering pace.

Matt Cowan, Reuters.