Fifteen percent of marketers to cut Q4 spending

Share this content:

Nearly 15% of marketers cut expenditures during the third quarter of 2011 and the same number plan to cut expenditures during Q4, according to the Direct Marketing Association's (DMA) Nov. 17 "Quarterly Business Review."

“These cuts reflect a lot about the economy,” said Yoram Wurmser, director of marketing and media insights at the DMA. “You have a two-tier economy where some segments are doing well and some are lagging.”

Wurmser said luxury goods and automobile marketers are performing and not seeing dramatic cuts whereas low- and medium-cost goods marketers are seeing cutbacks.

Despite lowered expenditures, 43.4% of marketers anticipate their spending will grow during the fourth quarter and 46% say they anticipate an increase in profitability.

“There's optimism out there. It's a good sign,” said Wurmser. “Marketer spending is growing, probably more slowly than a lot of people wanted at the beginning of 2011, but it's growing.”

Marketing acquisition efforts accounted for 59% of marketing budgets, according to the report. Almost 39% of marketers reported staff increases compared with 11.8% that reported decreases. Wurmser cited both figures as indications of industry-wide optimism.

Digital channels provided the highest return on investment (ROI) of all marketing channels, with search, social, and mobile tallying the most substantial reported ROI improvements since the second quarter.

“We saw marketers felt a higher need to show returns to C-level executives to quantify performance,” said Wurmser. “They're treating digital as a way to prove returns on specific investments. Returns are higher on digital than on traditional channels.”

The Quarterly Business Review for the third quarter of 2011 is based on 293 responses to an online survey conducted by the DMA's Research and Market Intelligence department in October. 

Loading links....

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here