Marketers Cutting Budgets More Deeply, ANA Finds

Feb 10, 2009  •  Post A Comment

A new survey found that marketers cut budget more sharply than previously predicted.
The Association of National Advertisers found that 37% of marketers say they plan to reduce budgets by more than 20%. When they were surveyed in August, only 21% of those responding expected such deep cuts.
More than three out of four marketers surveyed in January and early February said they are reducing advertising campaign media budgets. That 77% compares with 69% who planned to do so in August.
When asked about their predictions for what will happen in another six months from now, 49% of respondents said they expect their advertising budgets will be reduced, while 43 percent think that they will stay the same. Only 8% hope that their budgets will increase.
“In the current economic environment, there’s a need for brand building that’s right for the times—that acknowledges consumers’ financial circumstances, and offers them products, services and solutions that meet their needs,” said Bob Liodice, president and CEO of the ANA. “For some marketers, that will mean skewing their media mix towards promotional spending and direct marketing. For others it will mean framing a new, relevant and timely brand message.”
Back in August, 53% of marketers thought their ad budgets would be reduced in the next six month. In fact, 17% said they had already experienced a budget decreases. And while 38% thought their budgets would stay the same, only 23% actually reported no change in spending plans.
The marketing executives responding to the survey work in a variety of industries, including pharmaceuticals, financial services, consumer packages good, computers, technology and retail.
(Editor: Baumann)

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