Three Quarters of US Advertisers Will Cut Budgets in 2009

12 February 2009

NEW YORK: Some 77% of US advertisers plan to cut their media budgets in 2009, with other areas coming under scrutiny said to include agency compensation and ad production costs, according to the Association of National Advertisers.

The ANA's research, conducted among 141 marketers from industry sectors ranging from consumer goods to technology, also found that 71% of participants had seen their budgets cut since August last year.

Total advertising expenditure levels are expected to decline by over 6% this year in the US, according to figures from WARC, seemingly confirming the ANA's gloomy prognostications.
Furthermore, the ANA says 72% of marketers will slash their productions budgets in 2009, 68% will "challenge" their ad agencies to identify areas where costs can be cut, and 48% are looking to reduce the amount they pay in agency compensation.

Bob Liodice, president/ceo of the ANA, said: "This is not good for advertisers, this is not good for agencies, and it's certainly not good for media.

"The key message I've gotten from my members over the past few months is that there's terrible uncertainty out there."

Data sourced from; additional content by WARC staff