ANA: U.S. marketing budgets slashed
By Erina Lin, Monday 25 August 2008 at 19:52 :: Advertising :: #2165 :: rss
Due to the weakening economy, most U.S. marketers will be chopping down on their marketing budgets in the next six months, according to the Association of National Advertisers, Media Post reported.
In a recent survey of its members, ANA said 53 percent of marketers intend to slash marketing budgets, while 87 percent of those are “being scrutinised to show cost savings.”
ANA surveyed a range of industries, including pharmaceutical, financial services, consumer packaged goods, computers and technology, retail and others.
The study followed the recent news that General Motors would severely chop down its marketing and media costs over the coming months, including high-profile TV cutbacks of the Academy Awards and Emmy Awards media buys, Media Post reported.
ANA said 27 percent of its members believed their budgets would be cut between 11 percent and 20 percent, while 10 percent think budgets will be cut 30 percent or more. Around 69 percent foresaw specific media budgets being slashed, while 63 percent expected advertising campaign production budgets being scaled back, according to Media Post.
Moreover, according to ANA, 63 percent of marketers are being challenged to cut internal expenses as well as to identify cost reductions. Another 63 percent were looking at travel and expenses restrictions, while 61 percent saw new projects being delayed or even eliminated, Media Post reported.
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