FedEx cuts marketing budget
FedEx Corp. will slash its marketing budget by 25% this year, the company said.
Michael Glenn, EVP of market development and corporate communications, broke the news of the cuts in the company's blog.
Glenn said the company had reduced television advertising to its lowest level in more than three years and will not air a commercial during the Super Bowl.
“It's important to note that a large part of all marketing expenses are tied to long-term contractual agreements that we have with our various sports properties,” Glenn wrote. “This means that we are committed to pay both the sponsorship fees and for advertising during broadcasts. However, we have significantly cut back on the non-contractual aspects of these properties like hosting events during games.”
A FedEx spokesperson said the company would not specify which aspects of the marketing budget would be cut. .
Glenn states the company will continue to remain committed to advertise during sporting events and sponsor sporting events, stating that FedEx gets a return on investment of $4 for every $1 it spends on sports marketing, on average.
“In addition, our research shows that people making shipping decisions are sports fans,” he wrote.
The company announced in December pay cuts for top executives, and that it is suspending 401(k) company match contributions effective February 1, for a minimum of one year.