The advertising budgets have been affected by the economic crisis this year, with the biggest advertisers planning to reduce the funds for their promotion. Speaking to StockWatch, the media directors of seven big advertising companies agreed that this year will be difficult for the sector and the customers already send very conservative budgets on fears of uncertainty.
The car importers and the developers are the weakest link of the advertising chain. The media directors who handle their accounts talk about a drop in their budget of 50%, especially for companies that have lost their market shares.
Banks decided to cut their advertising funds too up to 30%. “So long as banks do not grant loans, how will they advertise them?”, an advertising company member said. “The banks advertise their depository products only”, another member said.
Consumer goods such as food and children’s goods are an exemption. Since consumption will not shrink but will slow down, many businessmen will try to take advantage of the crisis to increase their market shares via the increased promotion.
Despite the negative messages, there are hopes that the negative climate will be reversed. It is too early to jump into conclusions as many companies will not finalize their funds until late February.
“Most businesses try to drag out advertising until things with regard to crisis are clarified”, head of an advertising office said. The advertising circles support that many businesses will launch their campaigns after April.
Who will lose market shares and who will be benefitted? The media directors told StockWatch that some businesses might focus on an advertising means only due to the crisis. This can be achieved either via the TV or the radio, newspapers and magazines.
Some media directors believe that TV channels will be hit most. However, the views are divergent since some expect that the small means will suffer the biggest cuts.
The car importers and the developers are the weakest link of the advertising chain. The media directors who handle their accounts talk about a drop in their budget of 50%, especially for companies that have lost their market shares.
Banks decided to cut their advertising funds too up to 30%. “So long as banks do not grant loans, how will they advertise them?”, an advertising company member said. “The banks advertise their depository products only”, another member said.
Consumer goods such as food and children’s goods are an exemption. Since consumption will not shrink but will slow down, many businessmen will try to take advantage of the crisis to increase their market shares via the increased promotion.
Despite the negative messages, there are hopes that the negative climate will be reversed. It is too early to jump into conclusions as many companies will not finalize their funds until late February.
“Most businesses try to drag out advertising until things with regard to crisis are clarified”, head of an advertising office said. The advertising circles support that many businesses will launch their campaigns after April.
Who will lose market shares and who will be benefitted? The media directors told StockWatch that some businesses might focus on an advertising means only due to the crisis. This can be achieved either via the TV or the radio, newspapers and magazines.
Some media directors believe that TV channels will be hit most. However, the views are divergent since some expect that the small means will suffer the biggest cuts.
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