Blackfriars Marketing Index Rises to 146 in Q2
Actual Q1 Marketing Spending Drops to Lowest Level in Two Years; Advertising and Online Marketing Set New Highs.
MAYNARD, Mass., June 20, 2006— Marketing research consultants Blackfriars Communications, Inc. (Blackfriars) announced today that they have set the Blackfriars Marketing Index at 146 for the second quarter of 2006. The Q2 index indicates that US companies expect to spend 46 percent more on marketing this quarter than they spent in an average quarter in 2005. Blackfriars also set its Q1 2006 index of actual spending at 54, 52 points below the budgeted value from February. This Q1 index was the lowest in two years. A graph of the last ten quarters of budgeted and actual Blackfriars Marketing Indexes can be found at: www.blackfriarsinc.com/m06q2-index-graph.jpg.
Blackfriars also released its Marketing Category Indices for twelve types of marketing spending. Those indices showed that media dollars are moving on-line advertising, which grew to 15 percent of overall marketing spend. However, spending on traditional advertising remained stalled at 19 percent of budgets. A graphical breakdown of Q1 marketing spending by category can be found at: www.blackfriarsinc.com/m06q1-spending.jpg .
"Businesses are rethinking their marketing spending," said Carl Howe, a principal of Blackfriars. "Online spending of all types grew to more than a quarter of marketing budgets. We could see even more growth online if executives start spending the larger budgets they have planned for the second quarter."
Blackfriars analyzed the responses of 137 senior business executives to questions about their marketing budgets, attitudes, and spending to set this quarter's marketing index. Blackfriars surveyed the executives from April 7 through June 1, 2006. The executives surveyed represent a cross-section of U.S. businesses as tallied by the 2001 U.S. Census.
Survey Shows Less Satisfaction With Marketing
A key finding of the survey was that discontent with marketing is growing. Almost a quarter of respondents said that they are not very satisfied or not at all satisfied with their marketing efforts. Worse, executives who are extremely satisfied or very satisfied with their marketing has fallen to 38 percent from Q1's 53 percent.
"With both spending and marketing satisfaction down from last year, we could see a pullback in marketing activity for 2006," said Howe. "Marketing accounts for about one trillion dollars of spending in the US annually. If marketers slow their spending, that could hurt traditional media channels and the economy overall."
Blackfriars distributes the Blackfriars Marketing Index each quarter as a benchmark for US marketing budgets and spending. Blackfriars has published a 16-page research report titled "Marketing 2006: Q2 Bounces Back" provides detailed analysis of this survey data. Included in this report are details about actual first quarter 2006 spending, projections of second quarter 2006 marketing budgets, and detailed analysis of executive attitudes toward marketing. This report is available for $495 directly from Blackfriars and will also be distributed through MarketResearch.com, ResearchandMarkets.com, SourceMedia.com, and their affiliates.
About Blackfriars Communications, Inc.
Blackfriars Communications, Inc., headquartered in Maynard, Mass., improves how organizations communicate through consulting, executive training, and research services. With more than 25 years of experience in technology and marketing, Blackfriars' objective methodologies help companies distill, communicate, and deliver their value. On the Net: Blackfriars Communications, Inc. site: http://www.blackfriarsinc.com.
