Economic turbulence puts brand launches on hold
A new report released by digital publisher News Digital Media has advised that accountability is the key issue facing marketers today, leading to more brand launches being put on the back burner.
The study of more than 288 marketing professionals across Australia, conducted by research company Core Data, examined current market sentiment and future marketing plans.
It revealed marketers are experiencing greater scrutiny from management with the majority of respondents (61%) saying they were required to show more accountability in their decision making as a result of the downturn. Over half (57%) are now subjected to more frequent monitoring of marketing activity by management and a similar number reported changes to instructions from management as a result of the downturn.
Budgets are being cut – with 62% of marketers experiencing marketing budget cuts in the current financial year.
News Digital Media’s Chief Commercial Officer, Ed Smith noted that, with budgets being reduced, tough decisions had to be made.
“The report is evidence that marketers across Australia are feeling the pressure of today’s economic environment as we all try to do more with less,” he said. “They are subject to more scrutiny from management and are not replacing staff who leave. Many are reducing their spend on brand advertising and marketing with many putting launches on hold.”
Marketing planning cycles have shortened, according to almost two out of every five respondents, resulting in plans spanning less than 6 months surging from 9% to 66%.
Changes in media mix used has seen most mediums apparently lose ground to online, for which 75% of marketers are already allocating relatively more budget to as a result of budget cuts.
“Despite the economic downturn, online advertising looks set to accelerate further with the majority allocating more to online in their media mix,” Mr Smith concluded.