Good News: Things are Less Bad
the|G| via Creative Commons/Flickr.
The Association of National Advertisers released their latest poll today on how economic conditions are affecting advertising and marketing dollars.
The silver lining findings: things suck, but not quite as much as they did six and twelve months ago. The poll, which surveys ANA members, has been conducted every six months for the past two years.
“Today, 83% of the respondents indicate they are identifying cost savings and reductions in their current marketing and advertising efforts,” the report reads. “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%).”
Calling savings and reductions the “new normal,” the ANA believes reductions will continue if and when the economy improves. Currently, over 23 percent of the survey’s respondents say they expect to reduce their marketing budget by 11-20 percent. Another 29 percent believe they’ll be asked to make a 10 percent reduction.
“The quest for cost saving and reductions is here to stay and will be with us through both good and bad times,” says Bill Duggan, ANA Executive Vice President. “Just because the economy is improving doesn’t mean that clients won’t continue to press for such reductions. Pressure on agencies seems to be particularly brutal as marketers look for agencies to reduce internal costs as well as reduce the compensation marketers pay to them.”
Cost cutting includes internal mandates such as hiring and salary freezes but, significantly, a majority of respondents say they will reduce their overall advertising media and production budgets.
Yay for the new normal.
A copy of the report can be downloaded here.
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