Marketing budgets of world's biggest brands under pressure: study

(Credit: Shutterstock)
(Credit: Shutterstock)

Seventy-four percent of world's biggest advertisers say their 2023 budget decisions are influenced by the recession, with signs of retrenchment into short-term performance channels at the expense of brand building, according to a study by WFA and Ebiquity.

Source: The World Federation of Advertisers’ and Ebiquity’s 2023 Media Budgets Flash Survey Results is based on 43 validated responses from global brands, which represent over $44 billion in annual advertising spend.

More from this source:

  • 74% of brands agree or strongly agree that their 2023 budget decisions are influenced by the recession, with only 9% disagreeing or strongly disagreeing.
  • Overall, 29.3% of brands said they will decrease their total media budgets in 2023. Yet in APAC the outlook is slightly more positive with only 15% saying they will decrease their budget, while 50% will maintain their 2022 budget and 35% will slightly increase it.
  • 28% of brands said they will increase their share of performance in 2023, while only 21% will increase branding, indicating a shift towards more short-term performance channels at the expense of brand building.
  • 40% indicated they will increase their share of flexible/biddable buys in 2023.
  • Brands are planning to cut offline investment but boost digital: 48.8% will decrease their offline media budgets in 2023, while 42% will increase their digital media budgets.
  • Of media channels, Connected TV stands to see the biggest increase in investment at 67%, with paid social receiving 52%.
 
 

This story first appeared on Campaign Asia-Pacific.

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