Ad and Marketing Spend to Grow in 2009?

A survey of the 1,200 attendees at the annual Masters of Marketing Conference put on in October by the Association of National Advertisers 2008 showed some interesting, perhaps even contrarian, trends. A partial list of the questions asked and their resposnes is show below.

In short Marketers expect to spend the same or more on marketing and media in 2009 as they did in 2008. Their favorite media for this spend (in order) are: Social Media, grassroots, 30 second spots and web advertising. This definitely shows a continuing trend away from newspapers, magazines and tv toward the web, however, there are varying opinions as to where in Social Media to invest. While YouTube and Facebook were the favorite destinations among the attendees, "None" was the overall winner when they were asked "What is your preferred social media site for driving brand growth?"

This is definitely a positive sign for the market and one that highlights the strategy we discussed in a previous post where we argues that now was an excellent time to communicate with our customers and constituents and really make inroads vis-a-vis our competitors.

Survey results below:

How will you adjust your current marketing and media plans to account for the recent downturn in the financial markets?

• Spending will be constant / marketing mix will be reallocated (33%)
• Surprisingly, we will spend more (27%)
• Spending will be reduced (33%)
• No changes, we will keep everything status quo (8%)

As you look toward 2009, how much do you plan to spend on marketing vs. 2008?

• Increase spending more than 10% (26%)
  
• Increase spending less than 10% (13%)
  
• Hold stable (28%)
  
• Decrease spending less than 10% (14%)
  
• Decrease spending more than 10% (19%)

Which discipline will offer your brand the largest opportunity for growth?

• Traditional 30-second spots (17%)
• One page advertisements in a newspaper/magazine (7%)
• Web advertising (16%)
• Social media integration (28%)
• Direct Marketing (7%)
• Grassroots, viral public relations (19%)
• Radio (5%)
  

What is your preferred social media site for driving brand growth?

• None (32%)
• YouTube (20%)
• facebook (18%)
• All (12%)
• LinkedIn (10%)
• MySpace (6%)
• Twitter (3%)

Now is The Time to Make Time

About 15 years ago I took a road trip with my brothers and as we made our way up the highway, making good time but trying not to speed too much, we passed a Highway Patrol who had someone pulled over on the side of the road. I looked over to my brothers as I stepped on the gas and said "now is the time to make time". We all understood that the road ahead would be clear of speed traps and patrols for a good while.

I think that that is a perfect analogy for where we are right now in the current US economy. If your company has a good cash position then now is definitely the time to make time. Now is the moment to double down on opportunities. The talent pool is suddenly flush meaning that the cost of talent will decrease. Competition that is leveraged may not survive, opening up sales opportunities. Customers are looking to their providers to be sure that they will be around and continue to be their partner.

So, what exactly can be done? We Believe that Communication and Marketing are key factors of success during these interesting times.

1. Invest in your corporate communications, marketing and sales. While customers will take longer to buy and may buy less in the short term, I believe that many of them are looking for strategic relationships that will help them not only survive this downturn but to come out healthy, strong and ahead of the pack.

2. Communicate with your customers. Let them know that you will be around. Let them know that you are not only thinking about your own business but theirs as well. Rework contracts if necessary to the mutual benefit of both.

3. Work with your customers on their communication plan with their customers. Help them instill confidence in their customers the same way you are working with them.

4. Be visible. Build your image. Make sure that your are known to your audience. This is both visual and visceral. A company that retreats into its shell during these times will likely see its market position erode. This can be done cost effectively and creatively.

5. Consider scaling back the size of service providers, rather than the scope of your marketing and sales efforts. There are plenty of small and medium sized ad agencies, PR firms, marketing firms and Design houses that provide excellent product at competitive price points.

There is a lot more to be done on the cost side of the equation and operations in order to build a strong operation over the next 18 months. I have outlined some marketing and communications options that I believe to be valuable to the enterprise that wants to come out of these interesting times ahead of its competition.