New figures have revealed that the amount organizations plan to spend on advertising fell overall during the first quarter of 2011.
The news could lead to a drop in the number of firms utilizing email marketing as a means of customer communication.
According to the latest Bellweather Report, the rate of cuts to business spending in the first three months of the year was similar to that experienced in the previous quarter.
However, the overall trend revealed that 39 per cent plan to increase their spending this year, compared to just 22 per cent who forecast a decline.
Andy Viner, head of media for BDO, commented: "The reduction of marketing budgets for the second successive quarter supports our anecdotal evidence that companies are taking a cautious approach to marketing expenditure against a backdrop of continuing economic uncertainty."
He added that the outlook for this year is still positive as many firms are planning to spend more during the coming months.
Posted by Rachel Wheeler