Marketers are still under significant pressure to reduce expenditures as the nation slowly emerges from the Recession. However, their overall outlook has improved substantially since 2008.
Of 108 client-side marketers surveyed by the ANA (Association of National Advertisers) in January and February 2011, 77 percent of respondents report that they continue to be challenged to reduce spending across their marketing and advertising efforts. However, that represents a continued decrease from the number of marketers that expected to reduce their spending a year ago (83 percent) and two years ago (93 percent). The ANA began surveying its members three years ago to assess the impact of economic conditions on marketing spending.
Over the past six months, 63 percent of marketers’ budgets either increased or remained the same. This is a healthy improvement compared to the 54 percent increase / remained the same in January 2010 and the 29 percent increase / remained the same in 2009. Advertising budgets are shrinking less as well. Only 37 percent of marketers saw their budgets decrease this year, compared to 46 percent last year and 71 percent in January 2009.
As marketers looked out six months, there was a slightly better feeling about mid-year budget increases. Twenty-two percent are anticipating budget increases compared with 19 percent a year ago. Forty-nine percent of respondents in the current survey expect their budgets to remain the same in the next six months.
“It is gratifying to see an easing of the financial pressures marketers have faced over the past two years,” said Bob Liodice, president and CEO, ANA. “However, it appears that though budgets are increasing, marketers will continue being challenged to be efficient with their spending. This is a healthy trend as marketers’ spending must become smarter and more precise.”
In seeking cost savings, marketers are looking internally at departmental expense reductions and externally at agency costs, production budgets and media expenditures. The top ways they are reducing spending are:
70 percent are reducing departmental travel and expenses
67 percent are challenging agencies to reduce internal expenses and / or identify cost reductions
55 percent are reducing production budgets
49 percent are cutting media budgets
About the ANA
Founded in 1910, the ANA (Association of National Advertisers) leads the marketing community by providing its members with insights, collaboration, and advocacy. ANA’s membership includes 400 companies with 9,500 brands that collectively spend over $250 billion in marketing communications and advertising. The ANA strives to communicate marketing best practices, lead industry initiatives, influence industry practices, manage industry affairs, and advance, promote, and protect all advertisers and marketers. For more information, visit www.ana.net, follow us on Twitter, join us on Facebook, or visit our YouTube channel.
