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SMEs polarised on marketing investment

SMEs polarised on marketing investment

Research conducted by Signposter.com, the WPP-backed service to give small businesses straightforward and cost-effective access to Out of Home advertising, has found that while the majority of small businesses have cut their marketing investment in 2009, a significant minority have chosen to increase it to build and maintain a high profile throughout this difficult year.

35% of the SMEs Signposter.com surveyed said that they had increased marketing investment in 2009.  Commenting on the findings,

David Patton, CEO of Grey London, is not surprised.  He said: “In difficult economic times you need to maintain strong profile and presence.  These research results indicate that many SMEs have realised this, and responded by maintaining and even increasing marketing spend in order to achieve it.”

Referring to marketing investment, Bilal Faiz, Managing Director at Telco Global Limited said: “We have decided that, while we’re not going to try and ‘spend our way’ out of the recession, losing our profile by not advertising is more of a risk to us than spending our allocated marketing budget. 

"Therefore we have continued with carefully-chosen tactical advertising that we know works effectively to reach our target market, providing good return on the investment we’ve made.”

Simon Read, CEO of Signposter.com, commented: “The findings of this research surprised me, but I believe that the results are positive and indicate a shift in thinking amongst the SME community where the importance of marketing is concerned. 

“While yes, the majority of SMEs have cut marketing investment in 2009, 35% deciding to increase it is a significant minority.  This figure proves that there is widespread understanding of the importance of maintaining a high profile in the market place in order to get through the recession as unscathed as possible.”

AJR
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