SPH: Budget cuts are "premature" for now

Singapore - As Asia's economies begin the fight back for stability, Singapore Press Holdings (SPH), one of the country's biggest advertisers and media owners, says it is still "premature" to be talking about slashing marketing budgets.

"A forward-looking company will spend whatever it believes is necessary to build or strengthen its customer base, acquire new customers, explore new and potentially profitable opportunities and not let short-term setbacks distract it from investing for the future," Leslie Fong, senior EVP of marketing for SPH, said.

Fong adds that this is how SPH, which its financial year is from September 1 to 31 August, "approaches its marketing for 2009 and for the many years ahead."

Fong's response came from questions directed by Marketing following the release of a survey, conducted by R3, which showed as much as 20% of marketers polled in the region agreeing that the current economic downturn would significantly impact their marketing budget 2009 forecasts by over 20%. The study polled over 50 senior marketing decision makers based in Asia, and also found an increasing trend towards digital and BTL activities as more than 40% of marketers surveyed, now invest more in unpaid activities than in paid ATL media.

Richard Huggins, Microsoft Advertising's regional sales director, attributed the trend to the direct ROI measurement capabilities attached to digital marketing. But he added: "Untrusted digital platforms like mobile will take a hit."

"It's very evident we are seeing some clawback in the market. Overall marketing budgets will soften," he said.

R3's fieldwork for the study was initially completed in September but respondents were re-contacted following the further deterioration of world's economies in the last weeks.