The survey of more than 100 marketing leaders reveals that only 40% of them think they will be able to hang on to their agreed 2008 budget and about the same number foresee a budget cut as a result of an economic downturn.
Branding, advertising and traditional media spending will be the hardest hit categories, which will directly affect ad agencies.
The report predicts large changes ahead for the advertising and media industries. To reduce the impact of these cuts agencies will accelerate the integration of new media, strengthen their digital marketing practices and invest in communities for market and consumer intelligence.
It also expects these budget cuts in traditional media to affect the TV industry, forcing cable companies to speed up services like targeting TV ads via set-top boxes and ad-supported video on demand.
The biggest change, according to Forrester, will be a levelling of the playing field for large and small brands. Large brands have bigger budgets to cut therefore leaving room for smaller niche brands to use new advertising tactics to develop the same mindshare with their target audience as the big brands.
The report was written by Japp Favier, vice-president and research director at Forrester.
Comments
Quite simply ‘Traditional Media’ needs to change the way it works. Traditional press advertising will be around for many years to come, its impact is sometime brought in to question and as advertising goes, it is probably the least glamorous side of the business, but consumers will always buy newspapers and magazines. So we have to look at ways of making advertisers money go that little bit further.
Press advertising space can be costly and will generally account for a major part of a traditional advertising budget. With an imminent cut in market spend, maybe the publications could look at reducing their cost, but there are always deals to be done with last minute and distress bookings. These spaces are not always the most attractive, but do allow the media agencies to save their clients money.
Can we expect the publications to reduce their costs? Who knows. Could we look at the media agencies to maybe reduce their charges? Unlikely. So where does that leave us?
Well, there are a couple of areas that advertisers could look at. Demographic, or regional advertising for example. Not quite the same as national press. The advertising space is much cheaper in comparison, but advertisers would have to place a large number of ads to in a large number of publications to hit the same number of potential readers, which could be costly, but not anywhere near as costly as you might think. Advertisers and their agencies need to think outside the ’Traditional’ box. There are production solutions out there that work perfectly for traditional media, regardless if its for national, or regional titles. It comes down to how the production is handled.
For many years now advertising in national press publications has been quite a difficult and costly process. There are still some publications that insist on using an approved supplier or gatekeeper. This can be a costly and drawn out process and can counter act the hard work put in by the media agency when trying to purchase late space on behalf of their clients.
More recently there have been software developments that have bypassed the gatekeepers and allowed agencies and production houses to supply press advertising direct to the publications. Thus speeding up the whole process and reducing the cost, but how much has the cost been reduced? We still hear stories that press production and delivery cost far too much, even with these software developments. Advertisers and their media buyers need to shop around. There is plenty of expertise out there and plenty of money to be saved.
New developments in production software are constantly being looked at and developed, generally by the well known market leaders, such as Adobe and Quark, but how much do these developments do to speed up processes and reduce cost? I suppose it all depends on how they are used.
Companies such as Vio Worldwide constantly look at ways to improve the whole process. For nearly ten years Vio have supplied ad agencies, production companies, and media owners with advertising workflow tools and services to help them to reduce costs and become more productive, as well as to improve the visibility of your entire digital media supply chain. In fact Vio have been responsible for producing one of the market leading tools that allows their customers to deliver colour advertising direct to the newspapers, at fixed costs, regardless of size.
More recently they have developed automated processes that enable them to produce a high volume of press ads, enabling them to reduce production cost even further. Advertisers can take advantage of faster turnarounds, low cost production and delivery to any publication in the UK and Europe. With their automated ad production and delivery service, they can produce and deliver an ad to any UK publication in under five minutes. With regional, high volume press advertising, they can produce and deliver up to 250 ads per day utilising just one experienced artworker. All of these ads could easily have a different demographic message directed to an individual area, or store. For a standard studio, this kind of volume would require numerous personal, working over several days, and would have significant cost implications.
Now Vio offer these services within their own production studio. As a production studio, they are the new kids on the block, but have a team of some of the most experienced production personnel in the business. They combine their experience with Vio’s technology to provide a unique, stand alone service.
Vio recognise that the market is changing, they recognise that marketing budgets will, and are being cut. They are adapting to the situation and the rest of the industry needs to do the same. It may well be all doom and gloom, but there are ways to ensure that the impact on the advertiser is positive, rather than negative. The industry just needs to not be so ‘Traditional’ in its thinking.
Quite simply ‘Traditional Media’ needs to change the way it works. Traditional press advertising will be around for many years to come, its impact is sometime brought in to question and as advertising goes, it is probably the least glamorous side of the business, but consumers will always buy newspapers and magazines. So we have to look at ways of making advertisers money go that little bit further.
Press advertising space can be costly and will generally account for a major part of a traditional advertising budget. With an imminent cut in market spend, maybe the publications could look at reducing their cost, but there are always deals to be done with last minute and distress bookings. These spaces are not always the most attractive, but do allow the media agencies to save their clients money.
Can we expect the publications to reduce their costs? Who knows. Could we look at the media agencies to maybe reduce their charges? Unlikely. So where does that leave us?
Well, there are a couple of areas that advertisers could look at. Demographic, or regional advertising for example. Not quite the same as national press. The advertising space is much cheaper in comparison, but advertisers would have to place a large number of ads to in a large number of publications to hit the same number of potential readers, which could be costly, but not anywhere near as costly as you might think. Advertisers and their agencies need to think outside the ’Traditional’ box. There are production solutions out there that work perfectly for traditional media, regardless if its for national, or regional titles. It comes down to how the production is handled.
For many years now advertising in national press publications has been quite a difficult and costly process. There are still some publications that insist on using an approved supplier or gatekeeper. This can be a costly and drawn out process and can counter act the hard work put in by the media agency when trying to purchase late space on behalf of their clients.
More recently there have been software developments that have bypassed the gatekeepers and allowed agencies and production houses to supply press advertising direct to the publications. Thus speeding up the whole process and reducing the cost, but how much has the cost been reduced? We still hear stories that press production and delivery cost far too much, even with these software developments. Advertisers and their media buyers need to shop around. There is plenty of expertise out there and plenty of money to be saved.
New developments in production software are constantly being looked at and developed, generally by the well known market leaders, such as Adobe and Quark, but how much do these developments do to speed up processes and reduce cost? I suppose it all depends on how they are used.
Companies such as Vio Worldwide constantly look at ways to improve the whole process. For nearly ten years Vio have supplied ad agencies, production companies, and media owners with advertising workflow tools and services to help them to reduce costs and become more productive, as well as to improve the visibility of your entire digital media supply chain. In fact Vio have been responsible for producing one of the market leading tools that allows their customers to deliver colour advertising direct to the newspapers, at fixed costs, regardless of size.
More recently they have developed automated processes that enable them to produce a high volume of press ads, enabling them to reduce production cost even further. Advertisers can take advantage of faster turnarounds, low cost production and delivery to any publication in the UK and Europe. With their automated ad production and delivery service, they can produce and deliver an ad to any UK publication in under five minutes. With regional, high volume press advertising, they can produce and deliver up to 250 ads per day utilising just one experienced artworker. All of these ads could easily have a different demographic message directed to an individual area, or store. For a standard studio, this kind of volume would require numerous personal, working over several days, and would have significant cost implications.
Now Vio offer these services within their own production studio. As a production studio, they are the new kids on the block, but have a team of some of the most experienced production personnel in the business. They combine their experience with Vio’s technology to provide a unique, stand alone service.
Vio recognise that the market is changing, they recognise that marketing budgets will, and are being cut. They are adapting to the situation and the rest of the industry needs to do the same. It may well be all doom and gloom, but there are ways to ensure that the impact on the advertiser is positive, rather than negative. The industry just needs to not be so ‘Traditional’ in its thinking.
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Comments
Gary O'Donnell - 28/04/2008
Quite simply ‘Traditional Media’ needs to change the way it works. Traditional press advertising will be around for many years to come, its impact is sometime brought in to question and as advertising goes, it is probably the least glamorous side of the business, but consumers will always buy newspapers and magazines. So we have to look at ways of making advertisers money go that little bit further. Press advertising space can be costly and will generally account for a major part of a traditional advertising budget. With an imminent cut in market spend, maybe the publications could look at reducing their cost, but there are always deals to be done with last minute and distress bookings. These spaces are not always the most attractive, but do allow the media agencies to save their clients money. Can we expect the publications to reduce their costs? Who knows. Could we look at the media agencies to maybe reduce their charges? Unlikely. So where does that leave us? Well, there are a couple of areas that advertisers could look at. Demographic, or regional advertising for example. Not quite the same as national press. The advertising space is much cheaper in comparison, but advertisers would have to place a large number of ads to in a large number of publications to hit the same number of potential readers, which could be costly, but not anywhere near as costly as you might think. Advertisers and their agencies need to think outside the ’Traditional’ box. There are production solutions out there that work perfectly for traditional media, regardless if its for national, or regional titles. It comes down to how the production is handled. For many years now advertising in national press publications has been quite a difficult and costly process. There are still some publications that insist on using an approved supplier or gatekeeper. This can be a costly and drawn out process and can counter act the hard work put in by the media agency when trying to purchase late space on behalf of their clients. More recently there have been software developments that have bypassed the gatekeepers and allowed agencies and production houses to supply press advertising direct to the publications. Thus speeding up the whole process and reducing the cost, but how much has the cost been reduced? We still hear stories that press production and delivery cost far too much, even with these software developments. Advertisers and their media buyers need to shop around. There is plenty of expertise out there and plenty of money to be saved. New developments in production software are constantly being looked at and developed, generally by the well known market leaders, such as Adobe and Quark, but how much do these developments do to speed up processes and reduce cost? I suppose it all depends on how they are used. Companies such as Vio Worldwide constantly look at ways to improve the whole process. For nearly ten years Vio have supplied ad agencies, production companies, and media owners with advertising workflow tools and services to help them to reduce costs and become more productive, as well as to improve the visibility of your entire digital media supply chain. In fact Vio have been responsible for producing one of the market leading tools that allows their customers to deliver colour advertising direct to the newspapers, at fixed costs, regardless of size. More recently they have developed automated processes that enable them to produce a high volume of press ads, enabling them to reduce production cost even further. Advertisers can take advantage of faster turnarounds, low cost production and delivery to any publication in the UK and Europe. With their automated ad production and delivery service, they can produce and deliver an ad to any UK publication in under five minutes. With regional, high volume press advertising, they can produce and deliver up to 250 ads per day utilising just one experienced artworker. All of these ads could easily have a different demographic message directed to an individual area, or store. For a standard studio, this kind of volume would require numerous personal, working over several days, and would have significant cost implications. Now Vio offer these services within their own production studio. As a production studio, they are the new kids on the block, but have a team of some of the most experienced production personnel in the business. They combine their experience with Vio’s technology to provide a unique, stand alone service. Vio recognise that the market is changing, they recognise that marketing budgets will, and are being cut. They are adapting to the situation and the rest of the industry needs to do the same. It may well be all doom and gloom, but there are ways to ensure that the impact on the advertiser is positive, rather than negative. The industry just needs to not be so ‘Traditional’ in its thinking.
Gary O'Donnell - 28/04/2008
Quite simply ‘Traditional Media’ needs to change the way it works. Traditional press advertising will be around for many years to come, its impact is sometime brought in to question and as advertising goes, it is probably the least glamorous side of the business, but consumers will always buy newspapers and magazines. So we have to look at ways of making advertisers money go that little bit further. Press advertising space can be costly and will generally account for a major part of a traditional advertising budget. With an imminent cut in market spend, maybe the publications could look at reducing their cost, but there are always deals to be done with last minute and distress bookings. These spaces are not always the most attractive, but do allow the media agencies to save their clients money. Can we expect the publications to reduce their costs? Who knows. Could we look at the media agencies to maybe reduce their charges? Unlikely. So where does that leave us? Well, there are a couple of areas that advertisers could look at. Demographic, or regional advertising for example. Not quite the same as national press. The advertising space is much cheaper in comparison, but advertisers would have to place a large number of ads to in a large number of publications to hit the same number of potential readers, which could be costly, but not anywhere near as costly as you might think. Advertisers and their agencies need to think outside the ’Traditional’ box. There are production solutions out there that work perfectly for traditional media, regardless if its for national, or regional titles. It comes down to how the production is handled. For many years now advertising in national press publications has been quite a difficult and costly process. There are still some publications that insist on using an approved supplier or gatekeeper. This can be a costly and drawn out process and can counter act the hard work put in by the media agency when trying to purchase late space on behalf of their clients. More recently there have been software developments that have bypassed the gatekeepers and allowed agencies and production houses to supply press advertising direct to the publications. Thus speeding up the whole process and reducing the cost, but how much has the cost been reduced? We still hear stories that press production and delivery cost far too much, even with these software developments. Advertisers and their media buyers need to shop around. There is plenty of expertise out there and plenty of money to be saved. New developments in production software are constantly being looked at and developed, generally by the well known market leaders, such as Adobe and Quark, but how much do these developments do to speed up processes and reduce cost? I suppose it all depends on how they are used. Companies such as Vio Worldwide constantly look at ways to improve the whole process. For nearly ten years Vio have supplied ad agencies, production companies, and media owners with advertising workflow tools and services to help them to reduce costs and become more productive, as well as to improve the visibility of your entire digital media supply chain. In fact Vio have been responsible for producing one of the market leading tools that allows their customers to deliver colour advertising direct to the newspapers, at fixed costs, regardless of size. More recently they have developed automated processes that enable them to produce a high volume of press ads, enabling them to reduce production cost even further. Advertisers can take advantage of faster turnarounds, low cost production and delivery to any publication in the UK and Europe. With their automated ad production and delivery service, they can produce and deliver an ad to any UK publication in under five minutes. With regional, high volume press advertising, they can produce and deliver up to 250 ads per day utilising just one experienced artworker. All of these ads could easily have a different demographic message directed to an individual area, or store. For a standard studio, this kind of volume would require numerous personal, working over several days, and would have significant cost implications. Now Vio offer these services within their own production studio. As a production studio, they are the new kids on the block, but have a team of some of the most experienced production personnel in the business. They combine their experience with Vio’s technology to provide a unique, stand alone service. Vio recognise that the market is changing, they recognise that marketing budgets will, and are being cut. They are adapting to the situation and the rest of the industry needs to do the same. It may well be all doom and gloom, but there are ways to ensure that the impact on the advertiser is positive, rather than negative. The industry just needs to not be so ‘Traditional’ in its thinking.