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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 - 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:

  • 75 percent (up four percent from July/August 2009) are challenging agencies to reduce internal expenses and/or identify cost reductions.
  • 73 percent (down eight percent from July/August 2009) are reducing departmental travel and expenses.
  • 53 percent (down 21 percent from July/August 2009) are reducing advertising media budgets.
  • 50 percent (down 14 percent from July/August 2009) are reducing advertising production budgets.

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:

  • 39 percent of marketers thought their advertising budgets would be reduced in the next six months, when in fact, 46 percent experienced a budget decrease.
  • 44 percent thought their budgets would remain the same, while 34 percent did indeed stay the same.
  • 17 percent thought they would see a budget increase, whereas 20 percent increased.

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.

  • 59 percent expect budgets will stay the same.
  • 22 percent forecast that budgets will be reduced (versus 39 percent, 49 percent, and 53 percent respectively in the last three surveys).
  • 19 percent are hopeful budgets will increase.

About the ANA

The mission of the ANA (Association of National Advertisers) is to drive growth for marketing professionals, brands and businesses, the industry, and humanity. The ANA serves the marketing needs of 20,000 brands by leveraging the 12-point ANA Growth Agenda, which has been endorsed by the Global CMO Growth Council. The ANA’s membership consists of U.S. and international companies, including client-side marketers, nonprofits, fundraisers, and marketing solutions providers (data science and technology companies, ad agencies, publishers, media companies, suppliers, and vendors). The ANA creates Marketing Growth Champions by serving, educating, and advocating for more than 50,000 industry members that collectively invest more than $400 billion in marketing and advertising annually.

Press Contacts:

Lesley Neadel
CooperKatz & Co. for the ANA            
lneadel@cooperkatz.com                   
917.595.3034

Megan Burke
CooperKatz & Co. for the ANA
mburke@cooperkatz.com
917.595.3058