Standard Media Index , which measures how much advertising agencies spend on media, recorded a 10 per cent drop year-on-year in January to $542.6 million.Josh Faulks, the chief executive of the AANA, said that “pretty intense cost pressures” are overwhelming margins in many businesses he speaks to.
The AANA’s short survey asked simply: “Is your marketing budget currently being reduced?” with “yes”, “no” and “n/a” as the options. One-third said yes. “What I find encouraging is that two-thirds are holding. I think now is not the time to cut,” Mr Faulks said. “There will always be a range of industry people in certain segments disproportionately affected, and that creates cuts. But there are others where it’s an opportunity to ensure your brands and portfolio are the choice,” she said.“There is no doubt everyone is facing the headwinds of the current macroeconomic pressure. But actually over the last two years, we’ve faced that – supply chain costs, COVID. Marketers as business leaders are very well-versed in the skill of navigating these things.