AANA: 68% Of Aussie SMBs & 87% Of Large Businesses Still Have Marketing Dollars To Spend In 2020

AANA: 68% Of Aussie SMBs & 87% Of Large Businesses Still Have Marketing Dollars To Spend In 2020

Half of Aussie marketers are waiting for better times before committing budget and shift to online set to accelerate, a new study by the AANA has found.

Some 68 per cent SMBs and 87 per cent of large businesses still have marketing related spending budgeted for the next six months according to new research commissioned by AANA and IPSOS.

Most businesses say that releasing the spending will depend on when retail locations, national and state borders re-open and when employees re-start regular work patterns. As a result, 50 per cent of both large and small businesses have marketing budget sitting on the sides lines waiting to be committed at some point in the near future.

A total of 442 small, medium, and large businesses were asked about the combined impact of the bushfires and COVID-19 have had on marketing spend and what their media preference would be in the next six months.

Also of note is that large businesses are more committed to investing their marketing spend behind long term brand building which is a clear demonstration that Peter Field’s messaging to marketers is getting through with the balance between long and short term almost at the recommended 60/40 split. Alternatively, SMB’s have a much clearer priority towards short term sales focus.

The research found that the trend towards online channels will continue and it’s share of total media spend will accelerate as a result of the current economic crisis. Consumer uncertainty caused by new lockdowns and COVID hotspots will likely only exacerbate this as the population becomes less mobile. As a result, most Australian businesses are more likely to use and continue to use online paid media over traditional media.

Business resilience

Impact on business revenue in the first half of 2020 has been significant, with 85 per cent of SMBs and 76 per cent of large businesses claiming an average decrease of 42 per cent and 27 per cent respectively, compared to same period last year.

The research found that SMBs have been more likely than larger business in having to close or stop operating temporarily as a result of the current crisis but the SMBs that remained open seem to be more resilient than larger businesses. Some 28 per cent of SMBs have had no change to their business operations whatsoever while only 11 per cent of larger businesses fell into this category. A further 13 per cent of larger businesses are fully open and have had an increase in their business, while only five per cent of SMBs experienced an increase.

Impact on employment

Most businesses are unsure or now see business being negatively impacted for an extended time period (nine-plus months). Where larger business has tackled the crisis by asking staff to take annual or long service leave (50 per cent) most SMBs’ (47 per cent) staff have been put on reduced hours to manage the rolling restrictions. Larger businesses have also shed casual staff at a greater rate (40 per cent) than SMBs (18 per cent).

The Challenge

The number one challenge concerning all businesses is cashflow and with concerns about how to increase sales a close second. Larger businesses are more likely to face challenges trying to make do with less staff, managing limited supplies and customers, while SMBs are more likely to find challenging balancing business with personal/ household responsibilities.

 

 

 

 

 

 




Please login with linkedin to comment

AANA

Latest News

Veridooh Snatches Prashand Menon From ScentreGroup
  • Advertising

Veridooh Snatches Prashand Menon From ScentreGroup

Out-of-home OOH) and digital media leader Prashand Menon (lead image) has joined OOH ad tech company Veridooh as group business director within NSW and QLD. Menon joins Veridooh from his most recent role as ScentreGroup’s group business director and brings with him more than 10 years of experience in Australian media. Previously, he held positions […]

Kat & Co Transforms Into THE WORLD OF Experiential Agency
  • Advertising

Kat & Co Transforms Into THE WORLD OF Experiential Agency

After more than twelve years of producing experiences for some of the world’s most innovative brands, including Hermes, Van Cleef & Arpels, Louis Vuitton, and Tiffany & Co, Kat & Co has quietly metamorphosed into THE WORLD OF. THE WORLD OF is an experiential agency at the juncture of culture, technology and the human condition. […]

SMG Studio Launches Risk: Global Domination X Dune Part Two
  • Campaigns

SMG Studio Launches Risk: Global Domination X Dune Part Two

Through a licensing agreement with Legendary Entertainment, SMG Studio inked the rights to adapt Dune: Part Two into a game based on Risk: Global Domination, Hasbro’s interactive board game. Inspired by Denis Villeneuve’s cinematic masterpiece, Dune: Part Two, this new digital adaptation, RISK: Global Domination X Dune: Part Two, is poised to captivate players from […]

QMS: Taylor Swift, Lunar New Year & Mardi Gras Were Boon For OOH Market
  • Marketing

QMS: Taylor Swift, Lunar New Year & Mardi Gras Were Boon For OOH Market

Taylor Swift, Lunar New Year and the Sydney Gay and Lesbian Mardi Gras Festival have had a dramatic impact on the number of people moving in and around Sydney over the past month, drawing big crowds into the heart of the city and its surrounding suburbs. New data from digital outdoor company QMS reveals a […]

MKTG Launches PR & Talent Division Realigning Business Structure
  • Marketing

MKTG Launches PR & Talent Division Realigning Business Structure

Dentsu‘s MKTG Sports and Entertainment has unveiled a significant evolution, including the launch of a specialised PR and Talent Marketing division, investment in expanding its Creative Services group, and a centralised approach to brand and rights holder servicing with increased production capabilities and a strengthened in-stadium sports presentation team. Lead Image: MKTG CD Ross Allen; […]