According to an Association of National Advertisers survey...

Here's an interesting take on "the recession" and the marketing industry:

February 10, 2009 - According to a new survey from the ANA (Association of National Advertisers), the recession had a more profound effect on the marketing industry than predicted just six months ago.

Following up on a survey conducted in August 2008, the second survey reveals that more companies are identifying cost savings and reductions (93% as opposed to 87% six months ago) and that 37% of respondents today plan to reduce budgets by more than 20%, up substantially from the 21% of respondents in the first survey.

The top five areas where marketers plan to reduce costs or expenditures in marketing and advertising efforts:

Top Five Areas of Reduced Spending	July/Aug 2008	Jan/Feb 2009
Departmental travel and expense restrictions	63%	87%
Reducing advertising campaign media budgets	69%	77%
Reducing advertising campaign production budgets	63%	72%
Challenging agencies to reduce internal expenses and/or identify cost reductions	63%	68%
Eliminating or delaying new projects	58%	61%

Other tactics gaining greater consideration by marketers today, as compared to six months ago include:

• Nearly half (48%) are looking at reducing agency compensation today, versus 32% six months ago.
• Alter mix of marketing channels to lower cost channels (44% today v. 40% in first survey).
  
  
  MOD NOTE: This mix will only be implemented smoothly if the companies deploy some sort of marketing automation!

In the first survey, the ANA asked if marketers thought their budgets would increase, decrease or remain the same in the next six months.  In the recent survey, the ANA asked what actually happened.

• In July/August, 53% of marketers thought their advertising budgets would be reduced in the next six months, when in fact, 71% experienced a budget decrease.
• Close to four out of ten (38%) thought their budgets would remain the same, but only 23% had their budgets untouched.
• In the first survey, 9% thought they would see a budget increase, when only 6% did.

When asked about their predictions for what will happen in another six months from now, 49% of respondents felt that their advertising budgets would be reduced, while 43% think that they will stay the same and only 8% have hope that their budgets will increase.

MOD NOTE: I would really like to know the names of those 8% and see the results of their increased spending during these unpredictable times. Frankly, I believe they're doing the right thing! 

Something Different - Coworking at the Beehive

There's this new concept in idea generation called coworking. It's been around for some time across the globe. Baltimore, MD recently opened a coworking location at the Emerging Technology Center in Canton. Check out this brief video by Dave Troy and friends. It's quite the "buzz"...

A Thought About Cutting Back on Marketing - Don't do it! Just change the way you do it!

A friend of mine emailed me this quote. By applying marketing on demand solutions to this mind-set, you should be able to better manage advertising costs.

“To put it simply, the literature and experience [we] reviewed tell us that reducing expenditures for advertising during a recession can be an expensive mistake. One study after another, of recession after recession, shows that those who reduce spending usually lose market share and sales. Furthermore, they then take longer to recuperate than those who maintained their levels of spending. The bottom line? The advertiser who does not cut back can move ahead during the recession and afterward, capture share from those who, hesitant and unsure, do cut back.”

O. Burtch Drake – President/CEO American Associate of Advertising Agencies