The report was based on an online survey of more than 40 ICOM members.
All but one agency responding to the survey said the downturn has had a negative impact on client marketing budgets this year.
Fifteen percent of agencies said their clients’ marketing budgets are down by more than 49% this year; 38% said budgets are down between 21% and 49%; and 35% said budgets were down by 20% or less.
The survey also found that the slumping economy is forcing clients and agencies to be more creative with marketing programs. More than half the agencies surveyed said this statement most closely represents their experience: “Budget cuts and new challenges have served as catalysts for clients to come up with new ideas and experimentation to market their products.”