Marketers Cut Their Ad Budgets In Tough Economic Times-Adweek
August 25, 2008
NEW YORK Consumers, feeling less confident economically, are eating out less and downgrading to cheaper brands, marketers are slashing spending, and agencies are cutting or freezing their head counts. Such was the bleak, if not unexpected, picture that emerged from three separate research reports last week. The findings came as no surprise, given mounting losses in major industries (automobile, financial services), the rising prices of commodities and the historically close correlation between ad spending and the country's gross domestic product. Still, they contrasted starkly with the more optimistic collective mantra -- "We're seeing no signs of significant spending declines" -- that Interpublic, WPP, Omnicom and Publicis Groupe have stuck to since the economy began unraveling late last year.