ANA warns ‘marketing outlook worse than predicted'

US-- A survey by the Association of National Advertisers (ANA) has found that the recession has had a “more profound effect on the marketing industry than predicted”, with marketers preparing to slash budgets over the coming year.

The ANA survey found that 93% of respondents were identifying cost savings and reductions in their marketing and advertising spend, up from 87% six months ago.

In the most recent survey, 77% of respondents say they plan to reduce ad campaign budgets; 68% will challenge agencies to reduce costs; and 58% will eliminate or delay new projects. Thirty-seven per cent of respondents said they were planning to cut budgets by more than 20%.

While the ANA paints a bleak picture for the US market, on the other side of the Atlantic the UK Advertising Association's latest study offers some hope for the future.

The AA predicts that ad spending is set to recover in 2010 after a downturn in 2009 and grow by as much as 52% over the 10 years up to 2020.

Author: James Verrinder

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