Economic Conditions Forcing Marketers To Reduce Advertising Budgets, According To ANA Survey

Economic Conditions Forcing Marketers To Reduce Advertising Budgets, According To ANA Survey

New York, NY, August 21, 2008 — Marketers from a broad cross-section of categories and industries are feeling the pinch of belt-tightening with their budgets, according to a recent survey from the ANA (Association of National Advertisers). Over half of the 100 people surveyed (53 percent) expect their advertising budgets to be reduced in the next six months as a result of the tough economic climate, and 87 percent of those polled are already being challenged with identifying cost savings or reductions with current marketing and advertising efforts.

The survey, conducted this summer in light of the troubling economy, asked ANA members if they believed their marketing budgets would be reduced, and if so, how much of a cut they were facing. The survey also asked marketers about the specific cost saving measures they were planning to enact given the current economy. Marketers working in a range of industries were surveyed, including pharmaceutical, financial services, consumer packaged goods, computers and technology, retail and others.

“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 and CEO of the ANA. “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. Before rushing to slash marketing spending, it is important to carefully evaluate how effective short term budget management can lead to significant long term benefits.”

Of those who are already identifying cost savings, over half (53 percent) believed that their overall marketing budgets would be reduced between one to ten percent. Twenty-seven percent thought their budgets would be reduced between eleven to twenty percent, and ten percent were envisioning cuts of over 30 percent.

Respondents noted that the areas where they were planning to reduce costs or expenditures in their marketing or advertising efforts were as follows:

  • Reducing advertising campaign media budgets (69 percent)
  • Reducing advertising campaign production budgets (63 percent)
  • Challenging agencies to reduce internal expenses and/or identify cost reductions (63 percent)
  • Departmental travel and expense restrictions (63 percent)
  • Eliminating or delaying new projects (61 percent)

“Effective marketing spending during economic downturns is not about how much you spend but how you spend it” notes Liodice. “Marketers must assess how consumers and customer behavior can be positively influenced during tough times. If it can, then marketers should give increased consideration to more spending rather than cutting.

About the ANA

The ANA's mission is to provide indispensable leadership that drives marketing communications, media and brand management excellence and champions, promotes and defends industry interests. The ANA is the industry’s foremost and recognized source of marketing communications best practices. It also leads industry initiatives, influences industry practices, manages industry affairs, and advances, promotes and protects all advertisers and marketers. The trade association represents 400 companies with 8,000 brands that collectively spend over $100 billion in marketing communications and advertising. For more information visit

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