What the 20% fall in marketing budgets means to CEOs

Marketing report Forrester put out a report last week that showed that marketing budgets in large global companies are down 20% this year. Spending on TV, print, radio, magazines, and other branding and advertising is down a breathtaking 60%+. More contemporary channels like social computing and Web sites are seeing only modest cuts, with many companies reporting that they are actually increasing spending in those areas.

What should the CEO take away from this?

1) The report showed renewed focus on return on investment measures for marketing -- this is a healthy development that will help you post-recession. ROI analysis will eliminate, or at least minimize future marketing nonsense.

2) Social marketing is here to stay. It's time for you to understand it.

3) Budget cuts are forcing marketing to use more internal IT/BT resources. This is driving long-delayed collaboration between marketing and IT/BT -- critical to your future brand building. As I've said for years: When you give the Web site to IT/BT, they will screw up the customer. If you give it to the marketers, they will screw up the technology. There's only one path forward -- the two groups have to work together. Use some political capital and grease these skids.

4) Here's a nit -- but something you should bring up with your CMO. The report revealed that marketing was cutting deeply in online display ads (those ads you see in Web sites) -- too deeply in Forrester's opinion. We believe that this could endanger sales and brands as the economy recovers. Make sure that your marketing team is being judicious, not self-immolating.

Comments

re: What the 20% fall in marketing budgets means to CEOs

Ha...I love this. The "Breathtaking 60% drop" in marketing surely must have spilled over into "buying research!"I believe there are many marketing opportunities at-hand. Inexpensive social media outlets enable many opportunities. Free video hosting sites like YouTube and others afford a mechanism for distribution. Creativity is a constant. What's been lacking are cost-effective options for getting it in front of people. The very same entities who sponsor this blog or the main stream sites all had very tight control over the "Flow of information" for which they charged a very pretty penny. Not so much today, in terms of the control and even influence. It's a new media world and one in which a subtle twitch or tweak can yield very satisfying results. And best of all it can be done in a very, very affordable manner. If the CEO wanted to cut their budget, they could easily afford to eliminate the market staff and hire a small boutique for a lot less money and get equal to or better results. Outsourced marketing? Who'd a thunk it?

re: What the 20% fall in marketing budgets means to CEOs

Excellent post,crisp and clear. I like its information and tips which given and every thing explain with simple words,Thank you for sharing this post with us.