The 'all other' category -which includes PR, event sponsorship and market research - fared slightly worse than advertising and was also hit considerably harder than other disciplines such as direct marketing and the internet.
However, the report found that, for the second quarter in a row, the rate of decline in marketing spend across the board had eased.
The rate of decline remained severe for Q2, raising the risk of marketing spend falling in 2009 even more than in 2008. But one in three companies reported their financial prospects had improved, compared with one in four reporting a deterioration.
'To anyone optimistically inclined, the April Bellwether seemed to signal the bottom of the market, and the new report suggests the worst is over,' said IPA president and Ogilvy Group UK vice-chairman Rory Sutherland. 'While the economy is still tough, the balance of executives reporting improved prospects moved into positive territory for the first time since Q1 2008.'