Almost all American advertisers (94%) are concerned about the impact of prices on advertising spending, according to an IAB survey. Among these, 57% are “extremely worried” and 37% are “somewhat worried”.
The majority of people interviewed (60%) expect MA budgets will drop from 6%to 10%. Almost a quarter (22%) expect a drop from 11%to 20%. Budget contractions should peak in the middle of the year, 45% of advertisers planning to reduce overall advertising expenses.
Traditional media and social advertising should face the most important budget reductions, while CTV and online video can be more resilient.
Strategic adjustments
To deal with financial constraints, advertisers predicted:
- Reduce overall advertising expenses (45%)
- Increase emphasis on performance -based campaigns (35%)
- Go to digital channels with better measure (29%)
- Adjust campaign messaging (28%)
- Negotiate more flexibility (21%)
Do you plan to adjust your messaging? A recent DKC Analytics survey has shown that 66% of American consumers said that the best way for a business to respond to price price increases was to reduce the remuneration of executives. The survey, by DKC Analytics, also revealed that almost 50% of respondents were against the reductions in wages or social benefits of workers.
Dig more deeply: 3 reasons why your paid social ads do not convert (and how to repair them)
About the author
Constantine von Hoffman is editor -in -chief of Martech. A veteran journalist, Concrew business, finance, marketing and technology for CBSNEWS.com, Brandweek, CMO and Inc. He was editor -in -chief of Boston Herald, new producer at NPR, and wrote for Harvard Business Review, Boston Magazine, Sierra and many other publications. He was also a professional stand-up actor, given discussions during anime and game conventions on everything, from my neighbor Totoro to the history of dice and board games, and is the author of the magical novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and too much too many dogs.
