Economic Pressures and Revised Marketing Budgets
The extended economic slowdown is affecting the bottom line of many businesses and marketing is one of the budget items being cut for the second half of 2008. To determine the extent of budget cuts, the Association of National Advertisers recently surveyed its members and found over half of advertisers expect to reduce their marketing budgets. Here’s a list of the projected size of the cuts:
- 50% of businesses – 10% cut
- 27% of businesses – 11-20% cut
- 10% of businesses – 30+% cut
In addition, businesses are asking their agencies to find ways to save money, especially when it comes to travel. If you’re operating a smaller or lower-cost agency and have a geographic advantage, now might be the perfect time to pitch for a large account.[Source: McClellan, Steve. “Marketers Prepare to Slash Ad Budgets,” Adweek.com, 8.21.08.