According to the “Q2 Bellwether” report, released on Tuesday by the U.K. based Institute of Practitioners in Advertising (IPA) and Market Economics, growth in U.K. online ad spending grew just 6 percent over the first quarter of 2008.

This is the slackest rate of growth since 2003, and much lower than the 21 percent growth in the previous quarter.

Tougher economic conditions seem to be taking their toll on U.K. Internet marketing expenditure. Of the 250 companies surveyed for the report, only 19 percent increased their online budgets during the second quarter, compared with 27 percent in Q1. Furthermore, 12 percent decreased their budgets in Q2, compared with just 5 percent in the preceding quarter.

Online ad spending is expected to remain constrained throughout the remainder of the year.

Source: Jack Marshall, “U.K. Online Ad Spending Slows”, The Clickz Network, July 15, 2008

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