Over half of businesses are not cutting their advertising budgets, despite the current recession, according to a report by the Institute of Practitioners in Advertising (IPA).

According to the IPA report 55% of firms are not reducing their advertising budgets, up from 51% in the previous quarter.

Confidence among advertisers also increased this quarter, with 15% of companies reporting that they are positive about their firms prospects, compared to a record low of 5% in the previous quarter.

"This data supports the view that the bottom of the market has been reached. It will be a long road to recovery, but this may be the turning point," said IPA president Moray MacLennan.