A third of advertisers plan to reduce their EMEA budgets next year


Source: Blue Ox Studio Pexels One-third of advertisers plan to cut their EMEA media budgets by 2023.

Campaign UK The World Federation of Advertisers (WFA) cited new research.

“In a joint survey of major brands by the WFA and media investment consultancy EBCTT, almost 33% cut their investment – the worst of any region.”

Small and significant reductions

According to the survey, budget cuts in EMEA will decrease “slightly” (up to 10%) according to 28% of respondents. A total of 5% said they would reduce their investment “significantly” (more than 10%).

However, 38% of respondents plan to maintain their EMEA budget at 2022 levels, while 30% plan to increase it “slightly”.

Budgets affected by the economic downturn

He added: “Overall, 22% of respondents in Latin America said their media budgets would decrease, compared to 21% in North America and 15% in the Asia-Pacific region.”

Overall, 74% of more than 40 brands worldwide – with an annual advertising spend of more than $44 billion – “agreed” or “strongly agreed” that their 2023 budgets will be affected by the recession.

Brands plan to reduce offline media budgets (about 49% of respondents), but a similar proportion plan to increase their digital media budgets (42%).
Meanwhile, 40% indicated they would increase their share of flexible/bidder purchases by 2023.

Among media channels, connected TV has the biggest investment growth (67% of respondents), followed by paid social (52%).
The survey found a strong focus on short-term marketing, with 28% saying they plan to increase their performance marketing and 21% focusing on increasing brand spend by 2023.

Source: © Jonas von Wern The music industry is recovering, driven by live streaming.

Long term brand health risk

Campaign UK The CEO of the WFA mentioned Stefan Loerke

“These WFA and Ebiquity survey results show that budgets are under pressure and there are signs of slowing short-term performance channels for brand building spend.

But it’s encouraging that many clients are planning to persevere and follow the lessons learned from previous recessions, indicating that those who continue to invest or increase their advertising spending are getting stronger. economic instability”.

Nick Waters, CEO of Ebiquity Group, added: “Brands will need to achieve more with less in 2023 to optimize the value of their investment, so it makes sense to review spend and cut inefficient and wasteful spending first.

“Maintaining investment is one thing, but by over-investing in the bottom line of the acquisition, there’s a long-term brand health risk. It’s natural to want to see immediate results from a media investment, but the long-term trade-off must be carefully weighed. Rebuilding brand credentials once they’ve slipped.” It will be more expensive.



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