According to a survey conducted by the Association of National Advertisers, 77% of marketers plan to reduce their advertising campaigns' media budgets.
Typically, advertising lags six to twelve months behind the economy. So, most advertising growth should occur in 2010. As the economy begins to improve late in the year, smart advertisers (i.e. the 23% not cutting budgets) will have plans and budgets in place to take advantage of lower rates, available inventory and opportunities to grab share.
It also looks like agencies will need to cut expenses to hold on to accounts. Check out these other findings:
- 72% of marketers plan to reduce advertising-campaign production budgets
- 68% plan to "challenge" agencies to reduce internal expenses and/or identify cost reductions
- 48% are looking at reducing agency compensation