Marketing budgets are showing trends of rising.
When the recession hits, investing in marketing pulls you through. True? According to an industry survey this could be the case.
The Q1 2010 IPA/BDO Bellwether survey, which is widely thought of as the benchmark for the advertising industry, reveals that for the first time since the third quarter of 2007, around 21% of companies reported a rise in their marketing budgets, while only 16% saw reductions.
This is definitely good news for marketing agencies, but also makes good business sense. If your customers aren’t seeing your adverts, reading your PR or aware of your website, then they won’t know your product is available.
Other studies have shown that companies, who cut their marketing budgets during times of recession, see a decline in return on investment. Hillier analysis of 1,000 companies on the Profit Impact on Market Strategy database after the 1990s recession showed a 0.8% decline, and those who increased their marketing activity saw an increase of 4.3%.
It’s encouraging to see that when companies are controlling costs and cutting back on resources, marketing for now, isn’t one of them. In fact, it could lead to a speedier recovery.