Report: Most Marketers 'Tightening Their Belts'
November 4, 2008 at 5:11 AM (PT)
In the midst of a deepening economic crisis, many marketers in the U.S. are tightening their ad spending belts, and ad forecasters continue to adjust their predictions downward, with dollars draining from traditional media, writes EMARKETER.COM. But some savvy marketers are bucking that trend, and dealing with the downturn by spending more.
One-third of marketers surveyed in OCTOBER 2008 by the ASSOCIATION OF NATIONAL ADVERTISERS said they planned to cut marketing and advertising spending this year to account for the economic downturn. Another one-third said spending would remain constant and the marketing mix would be reallocated, while 27% said they planned to spend more.
Nearly four out of 10 of those same marketers (39%) said they would spend more on marketing and advertising next year, and 28% said they planned to keep spending at current levels. Only one-third said they would spend less.
Industry prognosticators, however, continue to paint a dire picture, with bleak forecasts across the media landscape.
Traditional media -- newspapers, magazines, TV and radio -- will be hit hard, as marketers become more frugal with ad dollars or take their money and apply it to more-measurable media.
Three industry forecasters -- BARCLAYS CAPITAL, MYERS PUBLISHING and WACHOVIA -- predicted spending for TV, radio, magazines and newspapers would decline in 2009. That is on top of almost universal declines in 2008 estimated across those same media by these forecasters, as well as by GOLDMAN SACHS and TNS MEDIA INTELLIGENCE.