NEW YORK Cutbacks in marketing outlays are deepening, according to a report released today by the Association of National Advertisers.
Thirty-seven percent of marketing executives surveyed in January and early February said they plan to cut their budgets by more than 20 percent, up from 21 percent of respondents saying the same in a similar survey fielded in August.
The report also notes an increase (from 69 percent to 77 percent) in the number of respondents who say they are paring ad-campaign media budgets. That dovetails with a rise (from 63 percent to 72 percent) in the number who said they're cutting ad-campaign production budgets. Sixty-eight percent (up from 63 percent in the summer polling) said they're "challenging agencies to reduce internal expenses and/or identify cost reductions."
Likewise, 48 percent (up from 32 percent in the earlier survey) "are looking at reducing agency compensation today."
Things are bad enough that it counts almost as good news that 49 percent of respondents think their ad budgets will be reduced in the next six months. That's down from the 71 percent who experienced such a cutback in the past six months.