Record high commodity prices, the subprime debacle, a bust in the US residential housing market, stockmarkets in a downward spiral - is this the harbinger for marketing cuts?
A recent survey of marketers by IDC indicates a mild slowdown. IDC released its results of a survey of 40 tech marketers who figure an average marketing spend increase of 4.0% for this year vs. 6.1% a year ago.
The advertising industry, ever so sensitive to economic downturns, maintains that there are no ill signs. In February, BtotB Magazine interviewed executives from BBDO, HSR Business to Business, Doremus and Ogilvy New York who all attested to a buoyant market. In January, the Economist interviewed the heads of Publicis Groupe and WPP who are excited by the prospects of America`s presidential election, the Beijing Olympics and the European soccer championship driving ad growth.
Although there is not a consensus on how the weakening economy will impact marketing, it is clear that the marketing environment is very different today than in 2000 - 2002 when irrational exuberance in brand-building marketing spend was quickly followed by a massive 10% drop in advertising spend in America in 2000.
The lessons from the last recession do not seem lost on the B2B marketers today. Our organizations are much more lean and accountable. With a proliferation of online media options, CRM systems and tracking tools, we are in a much better position to justify our marketing budgets.
Like the financial planner shuffling their clients` portfolio into defensive industries like retail and consumer packaged goods, marketers are spending more on online marketing where ROI can be easily measured.
Indeed we have less distance to fall than in 2000-2002. However we also can control our destiny as savvy marketers.
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Is Marketing in for a Soft Landing?
