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Marketers Optimistic Despite Ongoing Pressures to Reduce Spending

Marketers Optimistic Despite Ongoing Pressures to Reduce Spending
Recent Reductions Less Severe Than Previously Reported, According to New ANA Survey

New York, NY - According to a new survey by the ANA (Association of National Advertisers), marketers are still being pressured to reduce their costs and spending in light of the economy, though reductions are less severe than were reported in the three previous surveys conducted over the past eighteen months. 

Eighty three percent of survey respondents report that they continue to identify cost savings and reductions in their current marketing and advertising efforts.  While that represents a high percentage of respondents, this is improved from six months ago (87 percent), one year ago (93 percent), and eighteen months ago (87 percent).

"Though a vast majority of marketers continue to identify cost savings and reductions, the industry is finally beginning to show more optimism," said Bob Liodice, President and CEO of the ANA. "While it appears as though cutting costs may be the new reality, even when times are good, our series of surveys suggest that the deepest cuts may have already been made."

In fact, roughly 41 percent of respondents report planning to reduce marketing budgets by only one to five percent (compared to 22 percent in July/August 2009) and 70 percent planned to reduce budgets by one to 10 percent (compared to 55 percent in July/August 2009). Only seven percent plan reductions greater than 20 percent (compared to 30 percent in July/August 2009).

While the top four ways marketers are reducing costs and spending have remained constant over the past eighteen months, results show that marketers are putting the greatest emphasis on challenging agencies to reduce internal expenses and/or identify cost reductions as this is the only category that saw an increase in responses in each of the four surveys conducted.

The top ways marketers are reducing costs and spending:

Looking Back
Reported marketer spending in the second half of 2009 was similar to what was forecast in ANA's previous survey.  In that survey, conducted in July/August 2009:

Looking Ahead
Though the majority of marketers forecast no change in spending for the balance of 2009, predictions about advertising budgets in the next six months suggest some degree of optimism since the last survey.

Full survey results are available at www.ana.net/recessionsurvey.   

About the ANA
Founded in 1910, the ANA (Association of National Advertisers) leads the marketing community by providing its members with insights, collaboration, and advocacy. ANA's membership includes 350+ companies with 9,000 brands that collectively spend over $250 billion in marketing communications and advertising. The ANA strives to communicate marketing best practices, lead industry initiatives, influence industry practices, manage industry affairs, and advance, promote, and protect all advertisers and marketers.

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Press Contacts:
Lesley Neadel
CooperKatz & Co. for the ANA            
(917) 595-3034

Megan Burke
CooperKatz & Co. for the ANA
(917) 595-3058                                     

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