Credit crunch to destabilise marketers but online stays afloat

The economic crisis will cause a far tougher climate for the advertising and marketing industries in 2009, a new report predicts.

According to a report from Enders Analysis, the credit crunch will have a “deep and sharp” effect on marketers but online platforms are expected to remain robust.

The use of online marketing is expected to increase by 10.6 per cent over the next five years and experience its biggest rise in 2011, where the medium is predicted to go up by 13.3 per cent.

Meanwhile, nominal spending on TV advertising will decline by 19 per cent between 2007 and 2010, a figure that is expected to approach 30 per cent in real terms.

Direct mail expenditure is also expected to fall by 13.8 per cent in 2009 and by 6.8 per cent over the next five years.

Earlier this year, Enders Analysis predicted that online advertising spending will increase by 26 per cent this year to a figure of £3.56 billion, while revenues for TV will fall by 2.5 per cent to £3.39 billion.