A survey of major U.S. marketers, conducted by the Association of National Advertisers, found that 87% have cut back on marketing and advertising spending. Over 50% expect to further reduce spending by the end of the year.
Some of the respondents expect the coming budget reductions to be significant: close to a third predict cuts of 11% to 20%, while a smaller group (10%) expect decreases by 30% or higher. The majority of responding marketers (over 60%) said they plan to drop or delay projects, trim ad-production and media expenses and pressure their ad agencies to cut costs.
ANA is encouraging companies to do more research before making such decisions: “Effective marketing spending during economic downturns is not about how much you spend, but how you spend it.†According to the trade organizations, some marketers need to increase marketing spending during tough times.