The quarterly report found that while marketers revised budgets for internet advertising up 7.8%, event budgets were cut by 4%.
Direct marketing, PR and sales promotion also suffered cuts, while the budget for market research increased slightly by 0.7%.
The report shows signs of client confidence in the market picking up, however, as overall budget estimates increased by just over 1% - the highest reading since Q3 of 2011.
The rise marks a significant improvement from the 5.5% fall seen during Q3 of 2012, when the Olympics took place.
Of the companies surveyed for the report, 17% reported a rise in budgets, compared to 16% reporting cuts.
Nicola Mendelsohn, president of the IPA, said: "Marketing budgets have been revised up, albeit marginally, to the highest rate in over a year. So while we continue to operate amidst a difficult economic backdrop, we should nevertheless take encouragement from these figures, and do all that we can to remain positive in meeting the challenges we face."
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