Marketers markedly more positive on economy

London, 3 June 2009: Published today, The Chartered Institute ofMarketing’s latest Marketing Trends Survey (Spring 2009) reveals thatmany marketers believe the worst of the recession is over, although therest of 2009 will remain extremely challenging.

The survey, conducted for The Institute by Ipsos MORI, reveals that thenumber of marketers who believe the UK economy will worsen in the next12 months has halved to 34 per cent (down from 70 per cent in theAutumn 2008 survey). Likewise, those believing the UK economy willimprove in the next 12 months has risen sharply to 26 per cent (up from11 per cent in the Autumn 2008 survey).

When questioned about the prospects for their own organisation in theyear ahead, more marketers believe business will improve (35 per cent)than believe it will get worse (24 per cent) – reversing the decline inconfidence seen in the previous four surveys.

However, marketers remain gloomy about the prospects for the rest of2009. Almost three quarters (72 per cent) of marketers surveyed saidthey did not think the UK economy would pull out of recession in 2009.

This is reflected in the all-time low annual sales performance forecastfor this financial year – a 0.7 per cent increase – down from 3.1 percent in Autumn 2008 and down sharply from the 8.9 per cent growthexpected just two years ago.

As belts tighten, marketing spend is increasingly being focused on theactivities that marketers believe deliver the best return on investment– Customer Relationship Management, Public Relations and emailmarketing. In contrast, marketing spend on advertising (excludingonline) is down 4.9 per cent, reflecting the fact that 23 per cent ofthose surveyed believed it delivers the worst return on investment.

Marketers remain concerned about their employment prospects, with athird (32 per cent) worried about losing their job in the next 12months, including 45 per cent of those in the technology and telecomssector. In addition, 18 per cent of those who are self-employed areworried that the recession will cause them to close their business inthe year ahead.

Commenting on the findings, David Thorp, director of research andinformation at The Chartered Institute of Marketing said, “Despitefears over the economy and job prospects for the rest of 2009, it isclear that we are turning a corner in marketers’ confidence about thefuture. For now, marketers are wisely concentrating their spend in themost effective activities, and as we move into 2010, I’m convinced thismore professional approach will stand them in good stead when theeconomy recovers.”

Ends.

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