Insights

Strategic Decisions Can Offset Reduced Marketing Budgets
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Strategic Decisions Can Offset Reduced Marketing Budgets

While uncertain economic conditions have forced most marketers to cut back their budgets, they can take a number of steps to compensate for fewer available dollars and maintain the effectiveness of their campaign.  By moving beyond the use of traditional media age/sex demographics and having a clearer understanding of what networks and programs best reach actual brand targets, marketers have an opportunity to change their mix.  These new schedules can diminish the impact lower marketing budgets could have on a brand’s in-market presence.

Nielsen conducted a recession analysis that replicated the challenges a marketer might face in today’s economic climate.  Using the media schedule for a movie studio as an example, Nielsen evaluated three different approaches – the “hatchet” cut, the “precision” cut and the “remix” cut – to re-configure a media schedule to fit budget constraints.  In the study, we found that a marketer was successful in alleviating nearly 80 percent of potential Gross Rating Point loss due to a reduced budget, but came within 1 percent of the reach of the original schedule – clearly a good lesson for any marketer, regardless of industry.

A full description of the analysis appears in the current issue of Consumer Insight.