Posts Tagged compensation

By Tom Polanski, EVP, eBrand Media and eBrand Interactive

 A survey from the ANA (Association of National Advertisers) shows that the recession had a more profound effect on the marketing industry than predicted just six months ago,.  Following up on a survey conducted in August, the second survey conducted on this topic reveals that more companies are identifying cost savings and reductions (93% as opposed to 87% six months ago) and that 37% of respondents today plan to reduce budgets by more than 20%, up substantially from the 21 % of respondents in the first survey.
The top five areas where marketers plan to reduce costs or expenditures in marketing and advertising efforts are:

* Departmental travel and expense restrictions (87% versus  63% in the previous survey)
* Reducing advertising campaign media budgets (77% versus 69% in the previous survey)
* Reducing advertising campaign production budgets (72% versus  63% in the previous survey)
* Challenging agencies to reduce internal expenses and/or identify cost reductions (68% versus  63% in the previous survey)
* Eliminating or delaying new projects (58% versus  61) in the previous survey)
* Other tactics gaining greater consideration by marketers today, as compared to six months ago include:

* Departmental salary or hiring freezes jumped to 57% from 45% six months ago
* 48% of marketers are looking at reducing agency compensation today, versus 32% six months ago

In the first survey, the ANA asked if marketers thought their budgets would increase, decrease or remain the same in the next six months.  In the recent survey, the ANA asked what actually happened.

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