Marketing Directors Expect Recovery from Crisis to Come in Late 2021 | Residential dir

The marketing directors of the main advertising companies operating in Spain expect that the recovery of the sector will not come until the second half of next year; according to the Index of Expectations of Marketing Directors (IEDM), presented today and prepared by the Marketing Association of Spain and the market research consultancy GfK. If these expectations were met, there would be no recovery in “V”, but rather as the Nike logo. That is, a very abrupt drop in a short time and a somewhat more extensive recovery over time. In any case, the coronavirus crisis has caused the highest levels of pessimism among the marketing managers of the historical IED series, which has been going on for 14 years. And is that up to 91% of these types of professionals are more pessimistic now than six months ago regarding the evolution of the market. That rate had never been reached. Marketing managers expect the market to decline 6.7% this year, so the deterioration would be similar to the 2009 crisis, although not as pronounced. Furthermore, in the previous crisis, recovery took much longer to arrive than is currently expected. This 6.7% drop in the investment in marketing expected for this year will be produced, above all, by the collapse of advertising, which accounts for 60% of the average marketing budget. According to marketing directors, advertising investment will drop this year by 8%. Despite being a significant decline, the truth is that it is quite less than expected by other indices, such as the GroupM or IPG index, which put the drop between 16% and 20%. The costs of personnel associated with marketing departments (-10%) and market research and consulting (-6.4%) will also drop considerably. In contrast, investments in price (+ 16%) and brand equity and customer relations (+ 8%) will grow. Only 5% of marketing managers surveyed confirm that their budgets will increase this year. On the opposite side, 14% estimate that it will decrease a lot, while 29% believe that it will decrease somewhat. Another 20% anticipates that they will remain stable. By activity sectors, the most pessimistic marketing directors are automotive, retail, health and banking. Energy and insurance, on the other hand, are more optimistic. For Spanish marketing managers, the department that has increased its importance the most within organizations during the coronavirus crisis has been Systems. The weight of the CEO, the financial, commercial and customer departments has also grown. After that, the Communication one would come, ahead of the Marketing one. up