Total investments in marketing are reduced by -6.7%
The Marketing Association of Spain and the market research consultant GfK received the data from wave XXVIII of the Index of Expectations of Marketing Directors (IEDM) this morning. An indicator that shows the trends that marketing professionals for the second semester 2020 identify in different areas of activity compared to the results of the first semester 2020.
This time, the indicators for measurement were calculated. Your expectations regarding the behavior of the entire market, the sales of the companies they represent, and the investments in advertising that you want to make for the rest of the year have remained negative since the first half of the year. Of the three, the most critical value relates to expectations regarding market behavior (-4.4). They are followed by investments in advertising (-3.5) and sales expectations of their own companies (-3.2).
These doubts on the market were also confirmed in their answers to the question: When do you think the current crisis will end? And that of his areas of activity? Most of the directors consulted indicate that their companies will outperform it in late 2021, while Spain will take another year, with this improvement occurring in the second half of 2022.
Consultations were conducted between May 28 and June 23, 2020, through online interviews with marketing directors in major automotive, banking, energy, consumer goods, health, insurance and technology companies, retai ly marketing services. Since 2007, the study has been a semi-annual analysis of investment expectations, sales and market behavior for the semester after the consultation.
The forecast for investments in marketing however, was reduced -6.7%. Within this drop in budget, the concepts with the greatest reduction are advertising and personnel costs, and those that will increase will be investments in discounts, brand building and customer relationships.
Regarding the first semester that is now ending, The report shows that the sectors represented in the study behaved “very negatively” . So much so that seven out of ten respondents think this period was worse than expected.
With regard to the distribution of advertising investments between online and offline the mix of advertising investments online grew significantly compared to 6 months ago and preferred digital media. During the last semester, 5 out of 10 respondents spent more than 20% of the total investment on them, while today 7 out of 10 respondents assign the same weight to their budgets.
Finally, the participating marketing directors were asked: Which departments are becoming more important within the company and which, in your opinion, reduce their influence? The answers to the systems / IT that our organizations had to digitize within a few days, a speed that many did not know. As expected, the strategic weight and future vision of the CEOs are of particular importance. They are closely followed by the finance, retail and communications departments. Marketing and operations come next. The last positions in this ranking include HR, innovation and purchasing.