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Australian company directors to spend through slowdown

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A survey of Australian company directors has revealed an overwhelming trend to continue – or increase their marketing spend, despite the slowing of the Australian economy, something marketingmag.com.au blogger Brendon Cook discussed a month ago here.

Brendon, CEO of oOH Media, had this to say then:

"Research by Professor Patrick Barwise for the London Business School found:

"the most successful firms maxmise long-term shareholder value by maintaining or increasing their ad spending when the economy slows down and weaker rivals cut back."

While we must accept that there will be some advertisers who will take the easy option to appease short-term shareholder value and will slash marketing during the tough times, the good news is that more and more companies are heeding the research advice."

This survey then, conducted by the Australian Institute of Company Directors and strategy and marketing consultancy, Growth Solutions Group (GSG) to guage a boardroom perspective on priority marketing issues and intent for level of marketing spend, confirms Brendon's post.

One hundred and thirty-four Australian company directors responded to the survey, with only 1 percent planning to cut marketing investment, with 94 percent confirming no intent to cut marketing spend of which 49 percent are planning to increase.

More than one third (37 percent) identified their biggest marketing challenge as staying competitive in a difficult marketplace with limited resources, including time and budget.

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