77% of Marketers are Reducing Media Budgets
by Regis Hadiaris
Advertising Age is reporting the impact of this recession on marketing, from a survey by the Association of National Advertisers (ANA). The survey shows that 77% of marketers surveyed plan to reduce their advertising campaigns’ media budgets. The survey participants are comprised of 144 marketers across a variety of industries.
Most interesting were the “next steps” marketers plan to take, specifically:
- 72% of marketers plan to reduce production budgets. If media spend is lower, conventional wisdom says that you would spend less time on ad production.
- 68% plan to “challenge” agencies to reduce internal expenses. Many agencies carry high fixed costs (mostly salaries) and pass those costs on to their clients.
- 48% are looking to reduce agency compensation. If the client is negatively impacted by the recession, it’s only a matter of time before that impact trickles down to the agency’s compensation.
While this conventional wisdom focuses on reacting to constraints, effective marketers know that unconventional thinking in this environment creates new opportunities. Ideas these marketers use include:
- Shift offline media spend to online. Buying online media with offline dollars can generate an overall budget savings and produce a higher ROI at the same time.
- Invest in online production. Developing and testing new online ad creative and landing pages can help marketers get more results from less spend.
- Change the agency model. Working with agencies that match their internal resources to their clients’ needs are more agile and less costly.
Regis Hadiaris is an award-winning Internet marketer and experienced leader known for unconventional ideas and impressive results. His blog, Dot Connector, is a popular destination for personal development.