Promo agencies defy the gloom

SYDNEY: The Australian promotion and marketing industry is not going to go into its shell as the economy tightens, according to a survey by the Australasian Promotional Marketing Association (APMA).

The annual Industry Sentiment Survey of APMA member agencies and their clients revealed that almost half of member agencies expected marketing departments to increase or maintain current levels of spending. This compared to the majority of clients (66.7%) who expected their marketing budgets to be slashed in the year ahead.

In other key findings, 75% of clients and 41% of promotional agencies are planning to keep the same staff levels, with almost a quarter of promotional agencies likely to increase staff for 2009.

APMA chairperson Kylie Green said the survey echoed sentiments of similar studies in the UK and US that have shown promotional marketing looks well placed to ride out the economic downturn.

“Leading UK economists have been quoted as saying the industry is likely to win an increased share of the total marketing budget over the next 12 months, as companies increasingly switch to using very competitive promotions to win customers," Green said.