Marketers brace for the worst as Warc report raises recession fears
Marketers will find festive cheer in short supply as they read the latest global trends report published by Warc, with 95% bracing for the fallout of a looming recession amid spiraling inflation.
The report brings concern for the year ahead
Near universal fear has led 36% of respondents to rein in marketing spend, up from 23% last year, although 31% envisage increasing their spend as consumers pivot towards value.
The doom-laden report, which draws on responses from over 1,700 marketers, unearthed widespread gloom around 2023 and beyond, with 34% fearing media and audience fragmentation. This is forcing marketers to cast aside traditional notions of the mainstream and instead embrace specific communities within a decentralized media environment.
A further 26% fret over supply chain issues, forcing an emphasis on managing consumer expectations while investing in logistics to minimize disruptions.
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Infectious despondency is particularly pronounced with respect to the fate of big tech, with 62% of marketers agreeing that the sector must change strategy in response to a fast-changing market. Leading the souring of sentiment is Facebook, hit by negative sentiment for the first time in six years, with 30% proposing to decrease investment versus 20% who would increase.
Aditya Kishore, insight director, Warc, says: “Our Marketer’s Toolkit survey of 1,700 marketers worldwide found that 95% expect to be impacted by the economic recession. While it will undoubtedly be the single greatest global concern, there are other issues marketers will need to contend with, such as climate change, supply chains, media fragmentation and cultural divides. The coming together of all these factors is creating one of the most challenging marketing environments in recent history.”
Amid economic chaos, the fear is that environmental considerations will fall by the wayside – although this hasn’t yet materialized in the figures, with 72% of marketers sticking to pre-existing commitments and the remainder looking to reassess.