Advertising and marketing have been among the hardest hit industries during the economic crisis, says IBISWorld.
Business information analysts IBISWorld put key advertising industries under the microscope, and found that big advertising spenders are now slashing their budgets in a bid to stay afloat in the downturn.
IBISWorld cites three key reasons advertising budgets are quickly being slashed by cash-strapped businesses: falling revenue, fewer new products being launched, and in response to competitors decreasing their advertising activity.
However, according to IBISWorld general manager (Australia) Robert Bryant, history suggests that firms that continue advertising during difficult times will increase their market share and reap the rewards as the economy shows signs of recovery.
Looking ahead, Bryant said many firms may move towards digital advertising, as it is a cheaper alternative to TV and print advertising.
“Activity in this medium (digital advertising) may well be accelerated by the recession…. while digital media will continue to be part of the overall media strategy for larger organisations, smaller players may find it the only cost-effective or affordable option until the market improves.”
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