Business pundits generally cautioned merchants not to cut back their marketing expenditures during the recession. But many did. Now that the Great Recession is fading, more marketers are feeling optimistic about the economy and this optimism should result in higher advertising spending. The latest survey results released by the Association of National Advertisers (ANA) shows that many marketers will either increase or maintain their current promotional budgets this year.
The ANA survey, based on input from 108 client-side marketers, finds that the pressure to cut ad budgets is easing:
- 2009 – 93% (marketers that faced lower budgets)
- 2010 – 83%
- 2011– 77%
The news is more positive looking 6 months out. By mid-year, 22% of marketers say they expect to have a budget increase. And 49% believe their budgets will stay the same. Bob Liodice, president and CEO, ANA, says that “though budgets are increasing, marketers will continue being challenged to be efficient with their spending. This is a healthy trend as marketers' spending must become smarter and more precise."
We have clearly not returned to the days of free spending. Marketers are still looking for opportunities to keep costs low and they expect their agencies to follow suit. Top methods being used to accomplish this goal include:
- Reduced travel and travel related expenses 70%
- Pressing agencies to find ways to cut costs 67%
- Reducing production budgets 55%
- Reducing media budgets 49%
As I pointed out in a blog post earlier this week, economic and political turmoil impact business activity and marketing expenditures. The news from this survey indicates that marketers have turned a major corner and have every reason to be optimistic.[Source: Optimism of Marketers Reaches Highest Point in Two and a Half Years. ANA.net. 4 Apr. 2011. Web. 20 Apr. 2011]