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The 'New Normal' for Advertisers Likely to be the 'New Norm' for Business
One one hand, we could work harder to maintain the status quo -- but on the other hand -- maybe we could take a bit of time off, reduce our home and family budgets, and realize that the age of excesses is over. The earth might appreciate that -- and so might your family! (Once they get over the shock of seeing you in unexpected places like the dinner table and Saturdays at the park. :-) Marketers Still Frugal, But Deepest Cuts Behind ThemAccording to the most recent contiguous six month poll by the Association of National Advertisers (ANA), 83% of the respondents indicate they are identifying 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%), one year ago (93%), and eighteen months ago (87%).The report concludes that "The recession may be officially over, but it appears that marketers have reset their expectations and a greater degree of frugality has set in. Cost savings and reductions may be the "new normal", even when the economy improves significantly." In the most recent survey, 41% of respondents are planning to reduce marketing budgets by 1-5% and 70% plan reductions of 1-10%, up substantially from 55% in the July 2009 survey. Only 7% plan reductions greater than 20%, which is down sharply from 30% in July 2009. This indicates that the deepest cuts may have already been made. The top four ways marketers are reducing costs and spending:
Challenging agencies to reduce internal expenses and/or identify cost reductions has increased in each of the surveys. But just about every other category declined in the most recent survey, notes the report. SOURCE: Research Brief from the Center for Media Research, Feb 17, 2010
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