The most recent quarterly survey of marketing spend, published this week, reveals that current budgets have been revised down for the third consecutive quarter and to the greatest extent since late 2001.
Chris Williamson, Bellwether Report author and chief economist at Markit, said: "Rising costs and weaker-than-expected sales have put pressure on companies to cut marketing budgets in the second quarter to protect profit margins."
Hardest hit was direct marketing, which saw budgets revised downwards to the greatest extent in the history of the survey.
Rising costs, disappointing sales, and growing concern about the economy were cited as the main reasons behind the fall in spend.
Report warns of falling marketing spend rates
Advertising spend is falling at its fastest rate since the 11 September terrorist attacks, according to the latest Bellwether Report from the Institute of Practitioners in Advertising.
