More than half of the 100 ANA members surveyed in July and August (53%) expect a reduction in their advertising budgets in the next six months as a result of the economic crunch, and 87% have already been tasked with identifying potential cost savings or reductions in current marketing and advertising efforts.
“Historically, marketing budgets are among the first to be cut in a budget crunch, but marketers should be cautious about trying to find a quick fix,” said Bob Liodice, president-CEO of the ANA, in a statement. “In fact, spending more during tough times when competitors may be scaling back is a good way to strategically boost market share, because this often helps brands come out ahead when the economy rebounds.”
Among those already identifying cost savings, more than half (53%) said their overall marketing budgets would be reduced between 1% and 10%. Twenty-seven percent said their budgets would be reduced between 11% and 20%, and 10% said they expected cuts of more than 30%.