Inefficient marketing spend costs firms £615 million

7 December 2011

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7 December 2011 | Angeline Albert

Europe’s top 500 businesses are missing out on savings collectively worth €716 million (£615 million), due to inefficient buying of marketing goods and services.

A survey of 200 purchasers working for Europe’s top companies in terms of turnover found 79 per cent felt marketing products and services, such as printed materials or online advertising, could be purchased more efficiently at their company.

And some 65 per cent of procurement professionals, polled by marketing services production firm Charterhouse in November, said traditional spend categories – not including marketing - are now yielding fewer savings than ever before.

The poll also found that 35 per cent described marketing as “the last real opportunity” for procurement to drive significant new savings. And it also said purchasers were trying to work with marketers more closely to identify potential savings and make marketing budgets to go further.

“Most large businesses have been furiously driving out inefficiencies since the start of the recession. As a result, procurement professionals have to seek out savings in new areas. There is a huge opportunity for big businesses to make significant savings on their marketing,” said David Fincham, director at Charterhouse. “Driving purchasing efficiencies will be vital in an uncertain economic environment and in light of shrinking marketing budgets. We believe a closer relationship between the two disciplines can drive real savings without sacrificing the vital creativity and innovation that effective marketing demands.”  

The full results of the survey are due to be published in a report next year.

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