Marketers Still Challenging Agencies to Reduce CostsMarch 26, 2013
By Bill Duggan, Group EVP, ANA
ANA is about to release the results of our latest Recession Survey, a survey initiated in the depths of the recession in 2009 (hence the name!) and repeated annually since.
The survey asks (a) if advertising budgets are increasing/decreasing; (b) if marketers are challenged with identifying cost savings and reductions in their current marketing and advertising efforts; and (c) if so, how specifically they are planning to reduce costs.
Interestingly, the top six strategies for reducing costs of marketing and advertising efforts have remained consistent for the past three years.
It’s no surprise that departmental travel and expense restrictions continue to top the list (noted by 58% of respondents). The next most prevalent cost reduction strategy is to challenge agencies to reduce internal expenses and/or identify cost reductions (55%).
Meanwhile, the strategy of reducing agency compensation is way down on the list. Only 15% of marketers surveyed said they plan to reduce agency compensation. This is a significant decrease compared to past surveys, especially from 2009 (when it was 56 %). It’s possible that many marketers have reduced agency compensation as low as possible and now instead are challenging their agencies to reduce costs internally and/or identify cost reductions which, of course, could then indirectly lower agency compensation.
Look for full results of this Recession Survey to be released next week.
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