In 2006 marketing budgets were already under pressure. In 2007 the first major fall was reported and Q1 of 2008 started with a further reduction. Now for Q2 of 2008, 27% of companies reported reducing their quarterly budget according to the IPA Bellwether Report. This cutback is the largest since the 9/11 attacks and it resulted in a deteriorating business confidence. Further budget cuts, due to smaller corporate profitability, are predicted. Can we stop this trend?

The provided cause for cuts to 2008 Q2 budgets are disappointing sales, growing costs and reducing economic confidence. 19% of the survey companies reported a decrease in Direct Marketing budget. Budgets for internet marketing still show an increase of 19% however the smallest increase for five years.

Time to tackle the trend.

According to Moray MacLennan, IPA President Chairman Europe M&C Saatchi we have to “focus even more closely on cost control and secondly, strive for even more original and innovative solutions so they can buck the trend”.

How to focus on cost control? To tackle these cutbacks we suggest for instance to build bridges with procurement and do more for less. Here a some quick wins to start with.

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